What rights does Best Brains have regarding the franchisee's premises lease?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
You must lease the premises for your location in the form and manner required by us and deliver a copy of the signed lease to us immediately after its signing. You must not sign any lease which has not been approved in writing by us. If your business premises is to be leased, you must submit the lease to us for written approval at least fifteen days before it is scheduled to be executed. If you lease your business premises, the lease must include language contained in the Lease Rider which is attached to your Franchise Agreement as Schedule 2. The lease shall give us, our agents or designees the right to enter the premises to conduct inspections at any time during regular business hours, the right to receive notices of default directly from the lessor and the right, but not the duty, to assume the lease for all or any part of the term, if you default under the lease, are evicted or if your Franchise Agreement expires or is terminated. You must not lease or sublet all or any part of your business premises to others or use any portion of the premises for any purpose other than conducting business pursuant to your Franchise Agreement without our prior written consent. You must not sign or agree to any modification of the lease without our prior approval. You must agree that any new, amended, restated, extended or renewed lease for the location will include the above terms and conditions required to be included in a lease for a location. If you want to relocate, you must notify us in writing 60 days before the relocation. We reserve the right to refuse to approve a proposed relocation if we believe that the proposed relocation is for any reason not acceptable to us. Our judgment may be based on factors such as the proximity to existing or proposed locations owned by other franchisees or us, the suitability of the proposed facilities, compliance with our then current franchise location requirements, the competitiveness within the market place or other factors. We recommend that you employ the services of a real estate attorney for legal advice regarding the terms of the lease. (Franchise Agreement - Sections 5.C and D.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–28)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, franchisees must adhere to specific requirements regarding their business premises lease. Best Brains maintains significant control and rights over the lease agreement to protect its brand and operational standards. Franchisees are required to lease premises in a manner approved by Best Brains and must provide a copy of the signed lease immediately after execution. Securing written approval from Best Brains before signing any lease is mandatory, with submissions required at least fifteen days in advance. The lease must also include specific language outlined in the Lease Rider attached to the Franchise Agreement.
The lease terms must grant Best Brains, its agents, or designees several rights, including the right to enter the premises for inspections during regular business hours and the right to receive default notices directly from the lessor. Furthermore, Best Brains has the option, but not the obligation, to assume the lease for the remainder of its term if the franchisee defaults, is evicted, or if the Franchise Agreement expires or is terminated. Franchisees are prohibited from leasing or subletting any part of the premises or using it for purposes outside the scope of the Franchise Agreement without prior written consent from Best Brains.
Any modifications to the lease require prior approval from Best Brains, and any new, amended, extended, or renewed lease must include the terms and conditions initially required. If a franchisee wishes to relocate, they must provide written notice to Best Brains 60 days in advance, and Best Brains reserves the right to disapprove the relocation if it deems the new location unacceptable. This decision can be based on factors such as proximity to other Best Brains locations, suitability of the facilities, compliance with franchise location requirements, and market competitiveness. Best Brains recommends that franchisees seek legal advice from a real estate attorney regarding the lease terms, highlighting the importance of understanding these obligations.