What is granted to the franchisee by Best In Class Education Center regarding the Satellite Office?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Satellite Office Territory, if different than your Center Territory, must be located adjacent to your Center Territory.
During the term of this Addendum, we will not develop or operate, or license a third party to develop or operate, a Center or a Satellite Office that is located in your Satellite Office Territory except as otherwise provided in this Section.
At any time during the term of this Addendum we reserve the right to engage in Acquisitions that involve, or subsequently result in, conversion of the acquired or acquiring company's outlets to BEST IN CLASS EDUCATION CENTER® outlets, even if those outlets are located in the Satellite Office Territory.
We reserve the right to sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) through Alternative Channels of Distribution, including within the Satellite Office Territory and you are not entitled to any compensation for these sales.
- **5.
DEVELOPMENT AND OPERATION OF SATELLITE OFFICE**.
The development and operation of your Satellite Office shall be subject to all of the terms of the Franchise Agreement other than the following Sections of the Franchise Agreement which shall not apply: §2 (Grant of Franchise); §3 (Territory); §4 (Term and Renewal); §5 (Training and Conferences); §6.3 (Opening Assistance); §7 (Establishing your Center); §12 (Minimum Performance Requirements); §14.1 (Initial Franchise Fee); and the provisions in §21.1 (Termination By You) requiring you to comply with various procedural requirements in order to terminate without cause, but the remaining provisions in §21.1 shall apply to the Satellite Office.
You must open your Satellite Office no later than 180 days after the Effective Date.
- **6.
TERM AND TERMINATION**.
The term of this Addendum shall commence upon the Effective Date and expire upon the expiration, termination or transfer of the Franchise Agreement.
You may terminate this Addendum upon notice to us if you close your Satellite Office.
Your termination of this Addendum due to the closure of your Satellite Office shall not be deemed grounds for termination of the Franchise Agreement by either Party.
We may also terminate this Addendum if you breach any of your obligations under this Addendum or the Franchise Agreement and fail to cure such breach within the applicable cure period.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, the franchisee is granted the right to develop and operate a Satellite Office, subject to specific terms and conditions outlined in the Satellite Office Addendum. The Satellite Office Territory must be adjacent to the franchisee's Center Territory. Best In Class Education Center will not develop, operate, or license a third party to operate a Center or Satellite Office within the franchisee's Satellite Office Territory during the Addendum's term, with exceptions for Acquisitions.
However, Best In Class Education Center retains the right to engage in Acquisitions that could result in the conversion of acquired companies' outlets into Best In Class Education Center locations, even within the Satellite Office Territory. They also reserve the right to sell or license others to sell competitive or identical goods and services through Alternative Channels of Distribution within the Satellite Office Territory, without any compensation to the franchisee.
The development and operation of the Satellite Office are governed by the Franchise Agreement, except for specific sections that do not apply, such as those related to the grant of franchise, territory, term and renewal, training, opening assistance, establishing the center, minimum performance requirements, initial franchise fee, and certain termination provisions. The franchisee must open the Satellite Office within 180 days of the Effective Date, and the Addendum's term is tied to the Franchise Agreement's term, expiring upon the Franchise Agreement's expiration, termination, or transfer. The franchisee can terminate the Addendum by providing notice if they close the Satellite Office, but this termination does not affect the Franchise Agreement. Best In Class Education Center can terminate the Addendum if the franchisee breaches obligations under the Addendum or Franchise Agreement and fails to cure the breach within the specified cure period.