Does Best Brains have sole discretion in transferring or assigning the franchise agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Transfer by the Company. We shall have the right, in our sole discretion, to transfer or assign this Agreement and all or any part of its rights or obligations to any person or legal entity who agrees to abide by the obligations in this Agreement. You shall execute such documents consenting to such a transfer as we request.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Best Brains does have sole discretion in transferring or assigning the franchise agreement. Specifically, Best Brains has the right to transfer the agreement to any person or legal entity who agrees to abide by the obligations outlined in the agreement. The franchisee is required to execute documents consenting to such a transfer if Best Brains requests it.
However, the franchisee's ability to transfer the agreement is subject to certain conditions and requires Best Brains' prior written consent. Best Brains will not unreasonably withhold approval of a transfer if certain conditions are met, such as the franchisee offering Best Brains the right of first refusal, the transferee meeting Best Brains' standards, and the franchisee paying a transfer fee of $2,500. The franchisee must also ensure all monetary obligations to Best Brains are paid and that the assets of the franchised business are refurbished to meet current standards.
These stipulations are typical in franchising, as they allow Best Brains to maintain control over who operates a franchise under their brand name and to ensure that any new franchisee meets their operational and financial standards. The $2,500 transfer fee is also a common practice to cover Best Brains' administrative costs associated with the transfer process.