What is a 'Satellite Office' in the context of a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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With our prior approval, you may establish one or more satellite offices (each, a "Satellite Office"), which are spaces that are rented on a temporary basis (no longer than 12 months) and shared with other businesses/organizations. Examples of Satellite Office locations include churches, temples, libraries, HOA buildings, YMCAs, Boys & Girls Clubs, community centers, schools, and similar types of facilities. We will not consider allowing you to establish a Satellite Office unless: (a) your initial Center has been open for at least 6 months; and (b) your average monthly Gross Sales (defined in Item 6) equal or exceed $5,000 per month for the 3-month period preceding your request. You must sign our then-current form of Satellite Office Addendum for each Satellite Office you develop, the current form of which is attached to this Disclosure Document as EXHIBIT "H"-4. The Satellite Office is operated as an extension of the brick-and-mortar Center and is subject to all terms of the Franchise Agreement except as otherwise provided in the Satellite Office Addendum. Only franchisees with an established brick-and-mortar Center are eligible to purchase a Satellite Office. A Satellite Office cannot be purchased at the same time as the purchase of your initial Center.
Area Development Rights
If you satisfy our criteria for multi-unit developers, we may (but need not) offer you the right to enter into an Area Development Agreement in the form attached to this Disclosure Document as EXHIBIT "D" (an "ADA"). The ADA grants you the right and obligation to develop, open and operate multiple Centers within a defined "development territory" according to a predetermined "development schedule". You must develop, open and operate all of the Centers identified in the development schedule (Satellite Offices do not count). We only grant area development rights to franchisees who commit to develop, open and operate a minimum of 2 Centers. You sign a separate franchise agreement for each Center you develop under the ADA. Each franchise agreement will be our then-current form of franchise agreement, which may differ from the current Franchise Agreement attached to this Disclosu
Source: Item 1 — FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–10)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center FDD, a 'Satellite Office' is a temporary extension of a franchisee's established brick-and-mortar center. These offices are spaces rented on a temporary basis, for no longer than 12 months, and shared with other businesses or organizations. Examples of locations for Satellite Offices include churches, temples, libraries, HOA buildings, YMCAs, Boys & Girls Clubs, community centers, and schools.
To be eligible to establish a Satellite Office, a Best In Class Education Center franchisee must first have their initial center open for at least six months. Additionally, their average monthly gross sales must equal or exceed $5,000 per month for the three-month period preceding the request to open a Satellite Office. Franchisees must also sign the then-current Satellite Office Addendum for each satellite location they develop, with the current form attached as EXHIBIT "H"-4 to the FDD.
Satellite Offices operate as extensions of the main brick-and-mortar Best In Class Education Center and are subject to all terms of the Franchise Agreement, except as otherwise provided in the Satellite Office Addendum. It is important to note that only franchisees with an established brick-and-mortar center are eligible to purchase a Satellite Office, and a Satellite Office cannot be purchased at the same time as the initial center. Furthermore, when considering area development rights, Satellite Offices do not count toward the minimum number of Centers a franchisee must develop, open, and operate.