What advance notice must a Better Blend franchisee give to renew their franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
the agreements attached to this disclosure document.**
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| a. Length of the franchise term | Franchise | The term of the franchise agreement is 10 years from date of signing. The MUDA will expire on the date that your last franchise is scheduled to open. |
| Agreement (FA): § | ||
| 3.1 | ||
| Multi-Unit | ||
| Development | ||
| Agreement | ||
| (MUDA): §1(a) | ||
| b. Renewal or extension | FA: § 3.2 | You may obtain a successor franchise |
| of the term | ||
| MUDA: none | agreement for up to two additional 5-year | |
| terms. | ||
| c. Requirements for | For our franchise system, “renewal” means that | |
| franchisee to renew or | ||
| extend | ||
| at the end of your term, you sign our successor | ||
| franchise agreement for an additional five-year | ||
| term. You may be asked to sign a contract with | ||
| materially different terms and conditions than | ||
| your original contract. | ||
| To renew, you must give advance notice to us; | ||
| be in compliance with all contractual | ||
| obligations to us and third parties; renovate to | ||
| our then-current standards; sign then-current | ||
| form of franchise agreement and related | ||
| documents (including personal guaranty); |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, to renew a franchise agreement, a franchisee must give advance notice to Better Blend. The FDD does not specify the exact amount of advance notice required.
In addition to providing advance notice, the franchisee must be in compliance with all contractual obligations to Better Blend and third parties. Franchisees must also renovate their Better Blend location to the then-current standards, sign the then-current form of franchise agreement and related documents (including personal guaranty), and have not defaulted more than twice under the franchise agreement.
Furthermore, franchisees must comply with all requirements of ethics and values, pay a renewal fee, and sign a general release (unless prohibited by applicable law). If a franchisee continues to operate their Better Blend franchise after the expiration of the term without a renewal agreement, Better Blend may either terminate the operation at any time or deem the agreement renewed for a five-year term and collect the renewal fee.
Because the exact amount of advance notice is not specified in the FDD, prospective franchisees should speak with the franchisor directly to understand the specific timeline and requirements for providing renewal notice.