Does Article 17 (Dispute Resolution) of the Better Blend Franchise Agreement apply to the Guaranty?

According to Better Blend's 2024 Franchise Disclosure Document, Article 17 (Dispute Resolution) of the Franchise Agreement does indeed apply to the Guaranty. The Guaranty explicitly incorporates the dispute resolution terms outlined in Article 17 of the Franchise Agreement, meaning that the terms within Article 17 are considered part of the Guaranty as if they were written out in full within the Guaranty itself.

This incorporation means that any disputes arising under the Guaranty, which is typically signed by a guarantor to ensure the franchisee's obligations are met, will be subject to the same arbitration, injunctive relief, intellectual property claim protocols, confidentiality, and performance standards during dispute resolution as the Franchise Agreement itself. This ensures consistency in how disputes are handled across both agreements.

For a prospective Better Blend franchisee, this is important because it clarifies that the dispute resolution process is not limited to just the franchisee and Better Blend, but also extends to any guarantor involved. The guarantor is bound by the same arbitration and legal proceedings as the franchisee, including the location of arbitration, potential waivers of class actions, and time limitations for instituting legal actions. This also means that the non-prevailing party in a dispute related to the Guaranty may be responsible for covering the prevailing party's attorney fees and legal costs.