What action can Better Blend Franchising take to resolve a customer complaint regarding a Better Blend business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
BBF's exercise of that right will not be subject to any limitation or review. BBF has the right to operate, administrate, develop, and change the System in any manner that is not specifically precluded by the provisions of this Agreement, although this right does not modify any express limitations set forth in this Agreement. Whenever BBF agrees to exercise its rights reasonably or in good faith, BBF will have satisfied its obligations whenever it exercises reasonable business judgment in making a decision or exercising its rights. BBF's decisions or actions will be deemed to be the result of reasonable business judgment, even if other reasonable or even arguably preferable alternatives are available, if BBF's decision or action is intended, in whole or significant part, to promote or benefit the System or the Better Blend brand generally even if the decision or action also promotes BBF's financial or other individual interest. Examples of items that will promote or benefit the System or the Better Blend brand include enhancing the value of the Marks, improving customer service and satisfaction, improving product quality, improving uniformity, enhancing or encouraging modernization, and improving the competitive position of the System and Better Blend outlets.
- 11.13 Temporary Management. If (i) the Principal Executive dies or becomes incapacitated, (ii) this Agreement is terminated or expires and BBF elects to purchase assets of the Business as provided in Section 14.6, or (iii) Franchisee is operating the Business in a manner which, in BBF's reasonable opinion, constitutes a danger to the health or safety of any person, then BBF may (but is not obligated to) enter the Location and operate and manage the Business for Franchisee's (or Franchisee's estate's) account until this Agreement is terminated, the Business is transferred, the Business is purchased by BBF, or BBF returns the Business to Franchisee. BBF's operation and management will not continue for more than 90 days without Franchisee's consent (or the consent of the representatives of Franchisee's estate). If this Agreement has not terminated or expired, then BBF will account to Franchisee for all net income from the Business during the period in which BBF operates the Business.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, Better Blend has the right to operate and manage a franchisee's business under certain conditions, which could potentially address customer service issues. Specifically, if the franchisee is operating the business in a manner that, in Better Blend's reasonable opinion, constitutes a danger to the health or safety of any person, Better Blend may enter the location and operate and manage the business. This action is not an obligation but a right that Better Blend can exercise.
Better Blend's operation and management of the business cannot continue for more than 90 days without the franchisee's consent or the consent of the representatives of the franchisee's estate. If the Franchise Agreement has not been terminated or expired, Better Blend will account to the franchisee for all net income from the business during the period in which Better Blend operates the business. Better Blend is also allowed to collect a temporary management fee equal to 10% of Adjusted Gross Sales for the period in which Better Blend operates the Business, plus all expenses.
Furthermore, Better Blend's decisions or actions will be deemed the result of reasonable business judgment if the decision or action is intended, in whole or significant part, to promote or benefit the System or the Better Blend brand generally, even if the decision or action also promotes Better Blend's financial or other individual interest. Examples of items that will promote or benefit the System or the Better Blend brand include enhancing the value of the Marks, improving customer service and satisfaction, improving product quality, improving uniformity, enhancing or encouraging modernization, and improving the competitive position of the System and Better Blend outlets. This suggests Better Blend can take actions to improve customer service as part of benefiting the brand.