What happens to a Best In Class Education Center franchisee's obligations during the Interim Term?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
4.3. Interim Term. If you do not sign a Successor Agreement but continue to operate your Center after the Term expires, we may either treat this Agreement as: (a) expired as of the Term expiration date with you operating in violation of our rights; or (b) continued on a month-to-month basis (the "Interim Term") until either party provides the other party with 30 days' prior notice of termination of the Interim Term. All your obligations remain in full force and effect during the Interim Term, if applicable, as if this Agreement had not expired, and all obligations imposed on you upon expiration of the Term will take effect upon termination of the Interim Term.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center Franchise Disclosure Document, if a franchisee continues to operate their center after the franchise term expires but does not sign a Successor Agreement, Best In Class Education Center has the option to treat the agreement as either expired, with the franchisee operating in violation of their rights, or as continuing on a month-to-month basis, which is referred to as the Interim Term.
During this Interim Term, all of the franchisee's obligations remain in full force and effect, as if the original agreement had not expired. This means the franchisee must continue to meet all operational and financial requirements outlined in the original Franchise Agreement.
Upon the termination of the Interim Term, all obligations imposed on the franchisee due to the expiration of the original term will then take effect. This ensures a smooth transition and protects Best In Class Education Center's interests, while providing a clear framework for both parties during any period of continued operation beyond the initial term.