Can BBF negotiate system-wide agreements with third-party delivery services for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ties of the particular site or circumstances, density of population, business potential, population of trade area, existing business practices, applicable laws or regulations, or any other condition relevant to the performance of a franchise or group of franchises. Franchisee is not entitled to the same variation or waiver.
- 11.12 Franchisor's Discretion. BBF may engage in any activity not expressly prohibited by this Agreement. Whenever this Agreement provides that BBF has a certain right, that right is absolute and the parties intend that 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Better Blend franchise agreement does not explicitly address whether BBF can negotiate system-wide agreements with third-party delivery services. However, several clauses within the agreement grant BBF broad discretion over the System and the Better Blend brand.
Specifically, section 11.12 states that BBF may engage in any activity not expressly prohibited by the agreement and has the right to operate, administrate, develop, and change the System in any manner not specifically precluded. This suggests BBF has considerable latitude in making decisions that could impact the entire franchise system. Additionally, section 11.11 allows BBF to vary or waive any System Standard for individual franchises, indicating flexibility in adapting the System to different circumstances.
While the FDD does not directly confirm BBF's ability to negotiate system-wide delivery agreements, the broad discretionary powers granted to BBF imply that such actions are permissible. A prospective franchisee should seek clarification from the franchisor regarding their specific plans for third-party delivery services and whether franchisees will be required to participate in any system-wide agreements. Understanding these details is crucial for assessing the potential costs and benefits associated with delivery services.