Under what conditions can Best Brains suspend or terminate the Brand Development Fund?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon 30 days' prior written notice to you, we shall have the right to suspend contributions to and operation of the Brand Development Fund for one or more periods that we determine to be appropriate or to terminate the Brand Development Fund. - i. We shall distribute all unspent monies of the Brand Development Fund which was terminated to the Company, its affiliates and franchisees in proportion to their respective contributions to the Brand Development Fund during the preceding twelve-month period. - ii. We shall have the right to reinstate the Brand Development Fund upon the same terms and conditions as set forth in this Agreement, upon thirty days' prior written notice to you.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, Best Brains has the right to suspend contributions to and operation of the Brand Development Fund, or even terminate it altogether. This can occur if Best Brains determines it is appropriate to do so.
The FDD stipulates that Best Brains must provide franchisees with 30 days' prior written notice before suspending contributions to or terminating the Brand Development Fund. If the fund is terminated, all unspent monies will be distributed to the Company, its affiliates, and franchisees. The distribution will be proportional to their respective contributions to the Brand Development Fund during the 12-month period preceding the termination.
Best Brains also retains the right to reinstate the Brand Development Fund under the same terms and conditions as initially set forth in the agreement. Again, Best Brains must provide franchisees with 30 days' prior written notice before reinstating the fund. This gives Best Brains considerable flexibility in managing the Brand Development Fund based on its assessment of the needs of the Best Brains franchise system.