What standards must the assignee or transferee meet to be approved for a Best Brains franchise transfer?
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 standards for franchisees, is of good moral character, will comply with our standard training requirements, has received the required disclosure documents in accordance with law, and executes the then curren
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, to transfer a franchise, the assignee or transferee must meet several standards. The assignee or transferee needs to 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 individual must also comply with Best Brains' standard training requirements and have received the required disclosure documents in accordance with the law. Finally, the assignee or transferee must execute the then-current form of franchise agreement and other agreements.
Additionally, upon Best Brains' request, the assignee or transferee must agree to be personally bound jointly and severally by all provisions of the existing agreement. They must also assume and guarantee all of the franchisee's obligations under the agreement and any other agreements between the franchisee and Best Brains or its affiliates. Best Brains may also request that the current franchisee enter into an agreement guaranteeing full payment and performance of the obligations of their transferee.
Furthermore, before a transfer can be approved, all monetary obligations owed to Best Brains and its affiliates must be fully paid, and the franchisee must not be in default under the existing agreement. The assets of the franchised business must be refurbished, remodeled, or replaced to comply with the then-current standards and specifications used in granting franchises. If the lease for the franchised business premises requires consent for assignment, the lessor must consent to the assignment of the lease to the assignee or transferee. The franchisee must also pay Best Brains a transfer fee of $2,500 for the transfer of either a Premium Learning Center or a Teacher Learning Center franchise. Finally, the franchisee (and each of their owners, if the franchisee is an entity) must execute releases of all claims against Best Brains, its affiliates, and their officers, directors, managers, shareholders, members, employees, and agents.
These conditions are typical in franchising to ensure that any new franchisee meets the franchisor's standards and is capable of maintaining the brand's reputation and operational consistency. The financial and legal requirements protect Best Brains' interests and ensure a smooth transition.