What agreement must each owner of a Better Blend franchise entity sign?

According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee is a corporation, limited liability company, or other entity, each owner of that entity must sign a Guaranty and Non-Compete Agreement. This requirement ensures that the obligations and responsibilities outlined in the franchise agreement extend to the individuals who own the franchise entity, not just the entity itself.

By signing the Guaranty and Non-Compete Agreement, the owners of the franchise entity become personally liable for the franchise agreement's provisions. This means that if the franchise entity fails to meet its obligations under the agreement, Better Blend can seek recourse from the owners directly. This is a common practice in franchising to provide the franchisor with added security and assurance that the franchise will be operated according to the agreed-upon terms.

The Non-Compete aspect of the agreement restricts the owners from engaging in any business activities that compete with Better Blend, both during the term of the franchise agreement and for a specified period after its termination. This is designed to protect Better Blend's market share and prevent franchisees from using the franchisor's confidential information and business model to start a competing business. Prospective franchisees should carefully review the terms of the Guaranty and Non-Compete Agreement to understand the full extent of their obligations and restrictions.