factual

Is Best In Class Education Center required to review the terms of a franchisee's lease?

Best_In_Class_Education_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

Lease

We do not review the terms of your lease. However, if you lease the premises for your Center, you must use best efforts to ensure your landlord signs the Lease Addendum attached to the Franchise Agreement as ATTACHMENT "C".

We try to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. As of the date of this Disclosure Document, we have negotiated purchase agreements (including favorable pricing terms) with: (a) our affiliate, LBIS, for BCP-LMS; and (b) an optional (but recommended) real estate professional who agreed to review and negotiate a letter of intent and commercial lease for a flat fee of $3,500 per lease (because the lease review protects our interests as well as yours, we pay $1,000 and you pay the remaining $2,500).

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)

What This Means (2025 FDD)

According to Best In Class Education Center's 2025 Franchise Disclosure Document, Best In Class Education Center does not review the terms of a franchisee's lease. However, franchisees must use their best efforts to ensure that their landlord signs the Lease Addendum attached to the Franchise Agreement as ATTACHMENT "C".

While Best In Class Education Center does not review the lease terms, they do offer an optional (but recommended) real estate professional who will review and negotiate a letter of intent and commercial lease for a flat fee of $3,500 per lease. Best In Class Education Center contributes $1,000 towards this fee, while the franchisee is responsible for the remaining $2,500. This service is recommended because the lease review protects the interests of both the franchisee and Best In Class Education Center.

Although franchisees are not required to use the real estate professional, Best In Class Education Center must approve the final construction plans for the center. This approval process ensures that the center's design and construction align with Best In Class Education Center's standards and specifications, as outlined in the manual. This includes compliance with all applicable laws, building codes, permits, lease restrictions, and landlord requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.