Can Better Blend allocate internal costs when curing a default for a Better Blend franchisee?

According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee is in default of their agreement, Better Blend can take action to cure the default. If Better Blend takes such action, the franchisee is responsible for reimbursing Better Blend for all costs and expenses incurred. These costs and expenses include the allocation of any internal costs, plus an additional 10% administrative fee.

This means that if Better Blend needs to use its own employees or resources to correct a franchisee's default, it can charge the franchisee for the time and resources used. This could include the salaries of Better Blend employees, the cost of materials, and any other expenses incurred by Better Blend in curing the default. The 10% administrative fee is added on top of these costs.

For a prospective Better Blend franchisee, this highlights the importance of adhering to the franchise agreement to avoid default. If a franchisee does default, they could face significant costs beyond simply correcting the issue that caused the default. It is important to understand what constitutes a default under the agreement and to have a plan in place to address any potential issues that could lead to a default. Franchisees should clarify with Better Blend what specific types of 'internal costs' might be allocated in such a situation to fully understand the potential financial implications.