What rights does Best In Class Education Center have regarding Improvements licensed by the franchisee?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to assign to us or our designee, without charge, all rights to any Improvement developed by you, including the right to grant sublicenses.
If applicable law precludes you from assigning ownership to us, then such Improvement shall be perpetually licensed by you to us free of charge, with full rights to use, commercialize and sublicense the same.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, Best In Class Education Center has specific rights regarding any "Improvement" developed by an employee or independent contractor of the franchisee. An "Improvement" is defined as any modification or addition to the goods, services, operational methods, processes, marketing materials, or intellectual property used by a Best In Class Education Center.
The FDD states that franchisees must ensure their employees or independent contractors assign all rights to any Improvement they develop to Best In Class Education Center. This includes the right for Best In Class Education Center to grant sublicenses for the Improvement.
However, if applicable law prevents the assignment of ownership, the employee or independent contractor must grant Best In Class Education Center a perpetual, free license to use, commercialize, and sublicense the Improvement. This ensures that Best In Class Education Center can still benefit from and utilize any Improvements developed within the franchise system, even if direct ownership is not possible.