What happens if a Best In Class Education Center's assets are seized?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Email: hao@bestinclasseducation.com
certain rights to Franchisor as set forth below.
Mail: BiC Franchise System Corporation
4820 NE 4th St., Suite A-107 Renton, Washington 98059
Attention: Hao Lam
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- Right to Cure. If Tenant defaults under the Lease, Franchisor has the right (but not the duty) to cure such default within 15 days following the expiration of any applicable cure period. In such event, Franchisor may immediately commence occupancy of the Premises as the tenant under the Lease without obtaining Landlord's or Tenant's consent. Franchisor may thereafter assign the Lease to another Best In Class Education Center franchisee or to an entity owned and/or controlled by Franchisor. If it does, Franchisor must first obtain Landlord's written approval of the assignee. Landlord, however, must neither unreasonably withhold nor delay its approval thereof. Landlord will acknowledge any such assignment in writing. No assignment permitted under this Section is subject to any assignment or similar fee or will cause any rental acceleration.
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- Right to Assign. At any time (including, without limitation, upon the expiration or termination of the Franchise Agreement), and without Landlord's prior consent, Tenant may assign the Lease to Franchisor. In such event, Franchisor may thereafter assign the Lease to another Best In Class Education Center franchisee or to an entity owned and/or controlled by Franchisor. If it does, Franchisor must first obtain Landlord's written approval of the assignee. Landlord, however, must neither unreasonably withhold nor delay its approval thereof. Landlord will acknowledge any such assignment in writing. No assignment permitted under this Section is subject to any assignment or similar fee or will cause any rental acceleration.
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- Right of First Refusal. Landlord hereby grants Franchisor the first right of refusal to lease the Premises as the new tenant upon the expiration or termination of the Lease. Franchisor shall have a period of 30 days after the expiration or termination of the Lease to decide whether to exercise its right of first refusal.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not specify what happens if a Best In Class Education Center's assets are seized. The document includes information on territory descriptions, fees, and the franchise agreement, but it does not address asset seizure.
However, the document does provide information on the franchisor's right to cure a lease default. Specifically, if a franchisee defaults on their lease, Best In Class Education Center has the right, but not the duty, to cure the default within 15 days following the expiration of any applicable cure period. In this event, Best In Class Education Center may commence occupancy of the premises as the tenant under the lease. They can then assign the lease to another franchisee or an entity they own or control, subject to the landlord's approval.
To fully understand the implications of asset seizure, a prospective Best In Class Education Center franchisee should seek clarification from the franchisor regarding the specific procedures and potential consequences outlined in the Franchise Agreement. It would be prudent to inquire about insurance requirements, legal protections, and any support the franchisor provides in such situations.