Does Better Blend assume any liability with respect to the leased premises by executing the Rider?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
enant's business.
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- Right to Enter. Upon the expiration or termination of the Franchise Agreement or the Lease, or the termination of Tenant's right of possession of the Leased Premises, Franchisor or its designee may, after giving reasonable prior notice to Landlord, enter the Leased Premises to remove signs and other material bearing Franchisor's brand name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
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- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend does not assume liability with respect to the leased premises or any obligation as a tenant under the lease by executing the Rider to Lease Agreement. However, if the Franchise Agreement or the Lease is terminated, or the tenant's right of possession of the leased premises is terminated, Better Blend or its designee has the right to enter the leased premises to remove signs and other material bearing Better Blend's brand name, trademarks, and commercial symbols. In this case, Better Blend will be liable to the Landlord for any damage Better Blend or its designee causes by such removal.
This clause protects Better Blend from being held responsible for the franchisee's lease obligations. However, it also stipulates that Better Blend is responsible for any damages caused during the removal of its branding and trademarks from the premises, which is a standard practice in franchising to protect brand integrity after a franchise agreement ends.
This arrangement is typical in franchise agreements, where the franchisee is primarily responsible for lease obligations, but the franchisor retains certain rights and responsibilities related to their brand and trademarks. A prospective franchisee should understand these conditions and factor them into their business planning and risk assessment.