What action can Better Blend take regarding customer complaints about the Better Blend Business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
BBF may collect a temporary management fee equal to 10% of Adjusted Gross Sales for the period in which BBF operates the Business, plus all expenses
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend has the right to make decisions that improve customer service and satisfaction. BBF's decisions are considered the result of reasonable business judgment if the decision or action is intended to promote or benefit the Better Blend brand generally, even if the decision or action also promotes BBF's financial or other individual interest. Examples of actions that benefit the Better Blend brand include improving customer service and satisfaction.
Better Blend also has the option to temporarily manage a franchise location under certain conditions. One such condition is 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. In such cases, Better Blend may enter the location and operate and manage the business for the franchisee's account until the agreement is terminated, the business is transferred, or Better Blend returns the business to the franchisee. Better Blend's operation and management will not continue for more than 90 days without the franchisee's consent.
If Better Blend manages the business, they will account to the franchisee for all net income from the business during the management period, provided the Franchise Agreement has not been terminated or expired. Better Blend may 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. This means that if customer complaints are severe enough to indicate a risk to health or safety, Better Blend could take over management, implement changes to improve customer satisfaction, and charge a management fee.