What actions can Better Blend take regarding supplies if a franchisee is in default of the Better Blend agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
While Franchisee is in default or breach of this Agreement, BBF may (i) require that Franchisee pay cash on delivery for products or services supplied by BBF, (ii) stop selling or providing any products and services to Franchisee, and/or (iii) request any third-party vendors to not sell or provide products or services to Franchisee.
No such action by BBF shall be a breach or constructive termination of this Agreement, change in competitive circumstances, or similarly characterized, and Franchisee shall not be relieved of any obligations under this Agreement because of any such action.
Such rights of BBF are in addition to any other right or remedy available to BBF.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, if a franchisee is in default or breach of the Franchise Agreement, Better Blend has specific rights regarding the supply of products and services. Better Blend can demand that the franchisee pay cash on delivery for any products or services that Better Blend supplies. Better Blend can also stop selling or providing any products and services to the franchisee entirely. Furthermore, Better Blend can request that any third-party vendors cease selling or providing products or services to the franchisee.
Better Blend's actions will not be considered a breach or constructive termination of the agreement, a change in competitive circumstances, or anything similar. The franchisee will still be responsible for all obligations under the agreement, even if Better Blend takes any of these actions. These rights are in addition to any other legal remedies Better Blend may have.
This clause protects Better Blend by ensuring they don't have to continue supporting a franchisee who isn't meeting their obligations. For a potential franchisee, this highlights the importance of maintaining compliance with the franchise agreement to avoid disruptions in supply and potential business operations. It is a fairly standard practice in franchising to protect the brand and supply chain.