What standards must the assignee or transferee meet to be approved by Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
aph and Agreement are held to be unreasonable and therefore unenforceable by any court of competent jurisdiction, then the duration, scope and/or geographic area of the foregoing restrictions and agreements shall remain in full force and effect as to such maximum duration, scope and/or geographic area as the court shall allow.
9. TRANFERABILITY OF INTEREST.
- 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.
- B. Transfer by Franchisee. You understand and acknowledge that the rights and duties set forth in this Agreement are personal to you, and that we have granted this franchise in reliance on your business skill, financial capacity, and personal character.
Accordingly, you may not sell, assign, transfer, convey, pledge, encumber, merge, or give (collectively "transfer") away any direct or indirect interest in this Agreement, in Franchisee, or in all or substantially all of the assets of the Franchised Business without our prior written consent. Any purported assignment or transfer not having our written consent shall be null and void.
We shall not unreasonably withhold its written approval of an assignment or transfer, provided:
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- You have properly offered us the opportunity to exercise the right of first refusal as provided in the right of first refusal section of this Agreement, and we declined to exercise it;
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- The assignee or transferee has sufficient business experience, aptitude, financial resources, meets our then applicable
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, if a franchisee wants to transfer their franchise to another party, that party must meet certain standards to gain approval from Best Brains. Best Brains will not unreasonably withhold approval of a transfer if certain conditions are met.
The assignee or transferee must have sufficient business experience, aptitude, and financial resources. They must also meet Best Brains' then-current standards for franchisees and be of good moral character. The transferee must also comply with Best Brains' standard training requirements and have received the required disclosure documents in accordance with the law. Additionally, the transferee must execute the then-current form of franchise agreement and other agreements.
Upon Best Brains' request, the assignee or transferee must agree to be personally bound by all provisions of the Franchise Agreement and guarantee all of the franchisee's obligations. Best Brains may also require the original franchisee to enter into an agreement guaranteeing the transferee's obligations. All monetary obligations owed to Best Brains and its affiliates must be fully paid, and the franchisee must not be in default under the Franchise Agreement. The assets of the franchised business must be refurbished, remodeled, or replaced to comply with the current standards. If the lease requires consent, the lessor must consent to the assignment of the lease. Finally, a transfer fee of $2,500 must be paid to Best Brains for the transfer of either a Premium Learning Center or a Teacher Learning Center franchise.