Is Better Blend allowed to implement a centralized purchasing system?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
BBF's exercise of that right will not be subject to any limitation or review. BBF has the right to operate, administrate, develop, and change the System in any manner that is not specifically precluded by the provisions of this Agreement, although this right does not modify any express limitations set forth in this Agreement. 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, Better Blend has broad authority to make decisions that benefit the franchise system, which could include implementing a centralized purchasing system.
Better Blend's decisions are considered valid if they are made with reasonable business judgment and intended to benefit the Better Blend brand, even if they also benefit Better Blend's own interests. Examples of actions that benefit the brand include improving product quality and uniformity, which could be achieved through centralized purchasing.
The FDD defines "Input" as any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Business, and defines "Approved Vendor" as a supplier, vendor, or distributor of Inputs which has been approved by BBF. While the FDD does not explicitly state that Better Blend will implement a centralized purchasing system, it does state that the franchisee must purchase from Approved Vendors. A prospective franchisee should seek clarification from Better Blend regarding their plans for purchasing and vendor relationships.