When is the early termination fee due to Best In Class Education Center?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
he Brand Fund. |
| Type of Fee 1 | AMOUNT 2 | DUE DATE | REMARKS |
|---|---|---|---|
| Default | All costs we incur to cure your default | 10 days after invoice | If you fail to cure a breach of the Franchise Agreement or our brand standards in the time period we require, we may take steps to cure on your behalf and you must reimburse us for our costs (examples include failure to pay suppliers, maintain insurance or meet quality standards). |
| Reimbursements | |||
| Management Fee | $250 per day plus Travel Expenses and other costs we incur to temporarily manage your Center | 10 days after invoice | If you fail to cure a Franchise Agreement default or the Managing Owner dies, we can designate a person to manage your Center until the default is cured or Managing Owner replaced. |
| Indemnification | Amount of our damages, losses and expenses | 10 days after invoice | You must indemnify us for losses and expenses we incur due to your operation of the Center or breach of the Franchise Agreement. |
| Attorneys' Fees and Costs | Amount of attorneys' fees and costs we incur | Upon demand | You must reimburse us for all attorneys' fees and costs we incur relating to your breach of the Franchise Agreement or any related agreement. |
| Development | $2,500 for each 90-day extension | At time you request extension | You may extend a development deadline for 90 days by paying us the extension fee. You are limited to a maximum of 4 extensions for a Center (360 days). |
| Schedule | |||
| Extension Fee | |||
| (ADA only) | |||
| Early Termination | $5,000 | At time Center closes | You may terminate without cause if you: (a) provide at least 180 days' notice; (b) allow us to market and resell your Center during the 180-day period (you do not receive any proceeds of the sale); (c) pay all amounts owed; and (d) sign a General Release (subject to state law). You pay the early termination fee only if you close your Center before the end of the term and d |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, the early termination fee of $5,000 is due at the time the Center closes. However, this fee is only applicable if the franchisee closes the Center before the end of the franchise term and does not follow specific procedures outlined in the Franchise Agreement.
To avoid the early termination fee, a Best In Class Education Center franchisee must provide at least 180 days' notice of termination. During this 180-day period, the franchisee must allow Best In Class Education Center to market and resell the Center, with the understanding that the franchisee will not receive any proceeds from the sale. Additionally, the franchisee must pay all outstanding amounts owed to Best In Class Education Center and sign a General Release, which is subject to state law.
In summary, the early termination fee is only triggered if a franchisee prematurely closes their Best In Class Education Center location without adhering to the prescribed notification, cooperation, and financial settlement terms. By following the outlined procedures, a franchisee can terminate the agreement without incurring the $5,000 fee.