What conditions must I meet to obtain Best In Class Education Center's approval for a transfer?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
vision in Franchise Agreement governs. Subject to applicable state law, Washington law governs. |
| THE FRANCHISE RELATIONSHIP | ||||||
|---|---|---|---|---|---|---|
| Provision | SECTIONS IN AGREEMENT | SUMMARY | ||||
| i. Your obligations | FA: 22.1 | Obligations include: remove trade dress and alter premises to eliminate any resemblance to a Center; cease use of intellectual property; return Manual, educational materials and branded materials; return proprietary software; assign telephone numbers, listings and domain names; assign student/parent information and accounts; cancel fictitious names; comply with data retention policies; and pay amounts due (also see "r", below). | ||||
| on termination/ | ||||||
| non-renewal | SOA: Not Applicable ADA: Not Applicable FA: 20.1 | The SOA does not impose any post-term obligations on you. The ADA does not impose any post-term obligations on you. | ||||
|
SOA: 10 | No restriction on our right to assign. | ||||
| contract by us | ||||||
| contract by us | ADA: 7.1 FA: 1 (definition of Transfer) & 20.2 | |||||
| k. "Transfer" by | SOA: 1 | Includes ownership change or transfer of contract or assets. | ||||
| you – definition | ||||||
| you – definition | ADA: 1 (definition of Transfer) & 7.2 | |||||
| 1. Our approval of | FA: 1 (definition of Permitted Transfer), 20.2 & 20.3 | You may engage in a Permitted Transfer (defined in Note 2 in Item without approval. We must approve other Transfers but will n | ||||
| transfer by you | SOA: 5 & 10 ADA: 1 (definition of Permitted Transfer), 7.2 & 7.3 FA: 20.2 | unreasonably withhold approval. You may only Transfer a Satel Office to the same person who buys your Center in accordance with Franchise Agreement's transfer terms. Transferee must: meet our qualifications; successfully complete training (or arrange to do so); obtain required licenses and permits; assume your obligations under contracts relating to the Business; sign then-current form of franchise agreement for remainder of term or, at our option, assume your Franchise Agreement; and remodel Center and upgrade furniture, fixtures and equipment to current standards within 1 year of Transfer or such shorter period of time we specify. | ||||
| m. Conditions for | You must: be compliant with Franchise Agreement; assign lease (if applicable); pay transfer fee (subject to state law); |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 37–41)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, to obtain approval for a transfer, you must meet several conditions. First, you must be compliant with the Franchise Agreement. You'll also need to assign the lease, if applicable, and pay the transfer fee, which is subject to state law. Additionally, you are required to subordinate the transferee's ongoing payments owed to you, if any, to the transferee's payments owed to Best In Class Education Center. Finally, you must sign a general release, which is also subject to state law. Best In Class Education Center must also notify you that they will not exercise their right of first refusal.
For transfers of a Satellite Office, the transferee must be the same person who buys your Best In Class Education Center. The transferee must meet Best In Class Education Center's qualifications and successfully complete the required training, or arrange to do so. They must also obtain all required licenses and permits, assume your obligations under contracts related to the business, and sign the then-current form of the franchise agreement for the remainder of the term. At Best In Class Education Center's option, the transferee may assume your existing Franchise Agreement. Furthermore, the transferee must remodel the center and upgrade the furniture, fixtures, and equipment to current standards within one year of the transfer, or within a shorter period if specified by Best In Class Education Center.
For franchisees with an Area Development Agreement, the franchisee must be compliant with all Franchise Agreements and the ADA. They must assign all Franchise Agreements and Satellite Office Addenda (if applicable) to the same purchaser, unless Best In Class Education Center agrees otherwise or instructs the transferee to sign the then-current form of the franchise agreement. The franchisee must also comply with the transfer provisions in the Franchise Agreements and sign a general release, subject to state law. Best In Class Education Center must notify the franchisee that they will not exercise their right of first refusal.