What specific actions by a Best Brains franchisee constitute 'abandonment' of the operation of the Franchised Business that could lead to termination?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Section 7.B. is deleted and in its place is substituted the following:
- 7.B.1 Termination by Us Without Right to Cure. We may terminate this Agreement without notice and the opportunity to cure for any of the following reasons:
- (a) The franchisee or the business to which the franchise relates has been judicially determined to be insolvent, all or a substantial part of the assets thereof are assigned to or for the benefit of any creditor, or the franchisee admits his or her inability to pay his or her debts as they come due;
- (b) The franchisee abandons the franchise by failing to operate the business for five consecutive days during which the franchisee is required to operate the business under the terms of the franchise, or any shorter period after which it is not unreasonable under the facts and circumstances for the franchisor to conclude that the franchisee does not intend to continue to operate the franchise, unless such failure to operate is due to fire, flood, earthquake, or other similar causes beyond the franchisee's control;
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the definition of 'abandonment' that could lead to termination of the franchise agreement is specifically detailed in the California Addendum. This addendum modifies the standard franchise agreement for franchisees operating in California.
For Best Brains franchisees in California, abandonment is defined as failing to operate the business for five consecutive days during which the franchisee is required to operate the business under the terms of the franchise. Alternatively, abandonment can be determined after any shorter period if the franchisor concludes that the franchisee does not intend to continue operating the franchise. However, this determination must be reasonable based on the specific facts and circumstances.
There is an exception to this rule: if the failure to operate is due to events beyond the franchisee's control, such as fire, flood, earthquake, or other similar causes, it would not be considered abandonment. This clause protects the franchisee from termination in situations where unforeseen disasters prevent them from running the Best Brains center.