Upon termination, is a Best Brains franchisee required to refund tuition to students?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Pay amounts owed; return the Operations Manual and Software Program and return or destroy all other materials; stop using Marks, System and confidential information; de identify yourself from us; cancel assumed names; return to us any signs utilizing the Marks; provide us with the names, addresses, and telephone numbers of all customers; assign to us your telephone and facsimile numbers, and e-mail and internet addresses, websites, domain names, social media sites and search engine identifiers; assign your lease to us, at our option; adhere to non-competition provisions. Pay liquidated damages. Upon our request, transfer some or all of your students to another BEST BRAINS learning center, refund tuition, and take such other actions to ensure the orderly transition of students.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–34)
What This Means (2025 FDD)
According to Best Brains's 2025 Franchise Disclosure Document, under the obligations of termination or non-renewal, a franchisee may be required to refund tuition to students. Specifically, Best Brains may request that the franchisee transfer some or all of their students to another Best Brains learning center. As part of this process, the franchisee may have to refund some or all of the tuition paid by students for subjects that have not yet been completed. The franchisee must also take other actions as directed by Best Brains to ensure a smooth transition for the students.
This requirement ensures that students' educational progress is not unduly disrupted if a franchise terminates. It protects the interests of the students and maintains the reputation of the Best Brains brand. The franchisor has the right to enforce these actions to ensure an orderly transition of students.
For a prospective franchisee, this means that you need to be prepared to potentially refund tuition to students upon termination, which could impact your financial situation at the time of closure. It is important to factor this potential obligation into your financial planning and to understand the circumstances under which such refunds would be required. It would be prudent to discuss specific scenarios and the calculation of potential refunds with Best Brains during your due diligence.