Under what condition are initial fees and payments deferred for Best Brains franchisees in Maryland?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Initial Fee Deferral. Item 5 is modified to also provide, "Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement."
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, for franchises governed by Maryland Franchise Registration and Disclosure Law, there is a specific condition under which initial fees and payments are deferred. The Maryland Securities Commissioner requires a financial assurance based on Best Brains' financial condition. As a result, all initial fees and payments owed by franchisees in Maryland are deferred.
This deferral remains in effect until Best Brains completes its pre-opening obligations as outlined in the franchise agreement. This means a new Best Brains franchisee in Maryland will not have to pay the initial franchise fee until Best Brains has fulfilled its responsibilities to help them get their center ready to open.
This condition provides a significant benefit to franchisees in Maryland, as it reduces their upfront financial burden and aligns the payment of fees with the franchisor's performance in providing pre-opening support. It also offers some protection to the franchisee, as the fees are not paid until Best Brains has met its initial obligations.