Under what circumstances can Best Brains assume the lease for a Best Brains Franchised Business?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
The lease must include language contained in the Lease Rider, attached as Schedule 2. The lease must give the Company, its agents or designees the right to:
- i. enter the premises to conduct inspections at any time during regular business hours,
- ii. receive notices of default directly from the lessor, and
- iii. to assume the lease for all or any part of the term if you default under the lease, are evicted, or if this Agreement expires or is terminated.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Best Brains has the right to assume the lease for a franchised business under certain conditions. Specifically, the lease must grant Best Brains the right to assume it if the franchisee defaults, is evicted, or if the Franchise Agreement expires or is terminated. To ensure this right, Best Brains requires that the franchisee's lease includes specific language outlined in the Lease Rider, which is attached to the Franchise Agreement as Schedule 2.
Best Brains protects its interests and ensures business continuity by securing the option to take over the lease. This provision is crucial for maintaining control over the location and continuing operations, should the franchisee fail to meet their obligations or the agreement ends. The landlord is also required to provide Best Brains with copies of any default or termination notices sent to the franchisee, giving Best Brains the opportunity to address any issues and potentially cure any breach of the lease.
Furthermore, Best Brains can enter the premises to cure any breach of the lease and succeed to the franchisee's rights if they provide written notice to both the franchisee and the landlord. The franchisee also has the right to transfer their interest in the lease to Best Brains without the landlord's approval. This condition is subject to the premise being used only for a Best Brains business. If the Franchise Agreement is terminated or expires without renewal, the franchisee must assign all rights to the lease to Best Brains, provided Best Brains notifies the franchisee and landlord in writing that it assumes the franchisee's obligations under the lease.