What security is required for Best Brains financing?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 10. FINANCING
We offer the following financing program:
| Item Financed | Startup costs up to $30,000 will be offered to Teacher Centers. This can include but is not limited |
|---|---|
| to: furniture, build out, contractor pay, rent etc. | |
| Source of Financing | Us |
| Down Payment | Minimum of $3,000 |
| Amount Financed | Up to $30,000 |
| Interest Rate/Finance Charge | 0% |
| Period of Repayment | 24 months-beginning on the first day of class |
| Security Required | None |
| Whether a Person Other than the Franchisee Must | No |
| Personally Guarantee the Debt | |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal Rights | Waiver of right to jury trial; homestead and other |
| exemptions; waiver of presentment |
Source: Item 10 — FINANCING (FDD pages 22–23)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, Best Brains offers financing for startup costs up to $30,000 to Teacher Centers. This financing can be used for furniture, build out, contractor pay, rent, and other related expenses.
The terms of this financing include a minimum down payment of $3,000, with the remaining amount financed up to $30,000. Best Brains does not charge any interest on the financed amount, resulting in a 0% interest rate. The repayment period is set at 24 months, beginning on the first day of class.
Notably, Best Brains does not require any security for this financing. However, if a franchisee defaults on the loan, the entire amount due becomes immediately payable. The franchisee is also responsible for covering Best Brains's court costs and attorney fees incurred during the collection process, and the franchise agreement may be terminated. Additionally, the franchisee waives certain legal rights, including the right to a jury trial, homestead and other exemptions, and the right to presentment, demand, protest, and notice of dishonor.