What is the role of the Maryland Securities Commissioner regarding the financial assurance for Best Brains franchises?

According to Best Brains' 2025 Franchise Disclosure Document, the Maryland Securities Commissioner plays a role in requiring financial assurance from Best Brains based on the franchisor's financial condition. Specifically, the FDD states that the Commissioner has mandated a financial assurance, which leads to a deferral of initial fees and payments owed by franchisees in Maryland.

This means that if a prospective franchisee is opening a Best Brains center in Maryland, they will not have to pay the initial franchise fee or other payments upfront. Instead, these fees are deferred until Best Brains has fulfilled its pre-opening obligations as outlined in the franchise agreement. This provides a level of financial protection for the franchisee, ensuring that they do not pay fees until Best Brains has met its initial responsibilities in setting up the franchise.

This requirement is in place due to the Maryland Securities Commissioner's assessment of Best Brains' financial condition. The commissioner's role is to protect franchisees within the state, and this measure ensures that franchisees are not at risk of losing their initial investment if Best Brains fails to meet its obligations. This addendum modifies Item 5 of the standard franchise agreement to reflect this condition specific to Maryland franchises.