Upon termination or non-renewal of a Best Brains franchise, can Best Brains require the franchisee to transfer students to another Best Brains location?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfer some, or all, of the students to another BEST BRAINS learning center, refund some or all of the tuition paid by the students for subjects which have not yet been completed, and take such other actions as we may direct to ensure the orderly transition of such students.
Deliver to us the names, addresses and telephone numbers of your customers during the preceding three years.
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, upon termination or non-renewal of the franchise agreement, Best Brains can require the franchisee to transfer some or all students to another Best Brains learning center. The franchisee may also be required to refund tuition for subjects not yet completed and take other actions to ensure an orderly transition of students.
In addition to transferring students, the franchisee must also fulfill other obligations upon termination or non-renewal. These include paying all amounts owed to Best Brains or its affiliates and canceling any assumed name registrations, ensuring they no longer represent themselves as a former Best Brains business. The franchisee must also provide Best Brains with customer names, addresses, and telephone numbers from the preceding three years.
These stipulations are fairly standard in the franchise industry, as franchisors seek to protect their brand and customer relationships. For a prospective Best Brains franchisee, this means understanding that ending the franchise agreement involves more than just closing the doors. It requires active participation in transitioning students and providing customer information to Best Brains, which could impact the franchisee's future business prospects, especially if they plan to remain in the education sector.