Under what condition will Best Brains not unreasonably withhold consent to a transfer of the Best Brains franchise to an entity?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- **C.
Assignment to Entity.** If you are in full compliance with this Agreement, we shall not unreasonably withhold our consent to a transfer of this Agreement and the assets of the Franchised Business to an entity, provided:
-
- the entity name does not include the word "BEST" or "BRAIN" or "BRAINS" and its activities are confined exclusively to operating your Franchised Business;
-
Franchisee owns and controls all of the ownership interest and the entity assumes all of Franchisee's obligations hereunder and the owners agree to be personally bound jointly and severally by all the provisions of this Agreement and assume and guarantee all of Franchisee's obligations hereunder and all other agreements;
-
- any subsequent transfer of ownership interest in the entity shall be subject to our consent;
-
- the ownership shares indicate that any transfer of interests is restricted and may be transferred subject to our consent only in accordance with the terms of this Agreement; and
-
- You shall pay to us all legal expenses and other charges we incur in connection with such transfer.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Best Brains will not unreasonably withhold consent to a transfer of the franchise agreement and the assets of the franchised business to an entity if certain conditions are met. These conditions include that the entity's name does not include the words "BEST," "BRAIN," or "BRAINS," and its activities are exclusively confined to operating the franchised Best Brains business.
Additionally, the franchisee must own and control all ownership interest in the entity, and the entity must assume all of the franchisee's obligations under the franchise agreement. The owners of the entity must also agree to be personally bound, jointly and severally, by all provisions of the agreement and guarantee all of the franchisee's obligations. Any subsequent transfer of ownership interest in the entity is subject to Best Brains' consent, and the ownership shares must indicate that any transfer of interests is restricted and subject to Best Brains' consent, according to the terms of the agreement.
Finally, the franchisee is responsible for paying all legal expenses and other charges incurred by Best Brains in connection with the transfer. Meeting these conditions ensures that Best Brains maintains control over its brand and that the new entity is fully committed to upholding the obligations of the franchise agreement. This is a fairly standard practice in franchising, as franchisors typically want to ensure that any new entity operating under their brand meets certain standards and is financially and legally responsible.