Can Best Brains unreasonably withhold approval of a lease agreement?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchisor (or its affiliate or a company with which the Franchisee or the Franchisor may merge or consolidate) assumes the Lease, as above provided, the Franchisor (or its affiliate or a company with which the Franchisee or the Franchisor may merge or consolidate) may further assign or sublet the Lease to another person or entity to operate the Best Brains business at the Premises, subject to Landlord's prior written consent which consent shall not be unreasonably withheld or delayed.
Our judgment may be based on factors such as the proximity to existing or proposed locations owned by other franchisees or us, the suitability of the proposed facilities, compliance with ours then current franchise location requirements, and the competitiveness within the marketplace or other factors.
Our approval of the location and the lease does not constitute a guaranty or a representation of the likelihood of success of the location or the viability of the lease terms. You are encouraged to employ the services of a real estate attorney for legal advice regarding the terms of the lease.
Prior to renewal of a lease, we must review and approve the lease renewal. Our approval of the lease renewal shall be conditioned upon the inclusion of terms in the lease acceptable to Company, including but not limited to those provisions required to be included in a lease for a location as specified in this Agreement.
You are responsible for the fee for ours services in connection with the lease renewal and the process for evaluating the necessary upgrades up to $3,500. The fee is based on the costs incurred by us, and is due and payable to us at the time of the execution of the lease
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the franchisor's approval is required for any lease or lease modification for the premises of the Best Brains business. However, if the Franchisor (or its affiliate or a company with which the Franchisee or the Franchisor may merge or consolidate) assumes the Lease, the landlord's consent to further assign or sublet the lease to another person or entity to operate the Best Brains business cannot be unreasonably withheld or delayed.
Best Brains' judgment in approving a location and lease may be based on factors such as proximity to existing locations, suitability of facilities, compliance with franchise location requirements, and competitiveness within the marketplace. However, Best Brains' approval does not guarantee the success of the location or the viability of the lease terms.
Prior to a lease renewal, Best Brains must review and approve the lease renewal, which is conditional upon the inclusion of terms acceptable to the company. As a condition of approving the lease renewal, Best Brains may require the franchisee to remodel, modernize, and redecorate the premises to reflect current standards. The franchisee is responsible for a fee up to $3,500 for Best Brains' services in connection with the lease renewal and the evaluation of necessary upgrades. This fee covers the costs incurred by Best Brains and is due at the time of the execution of the lease.