Can BBF set delivery boundaries for Better Blend that are different from the Territory?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
BBF shall not establish, nor license the establishment of, another business within the Territory (other than a Limited Access Venue) selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend business. This prohibition does not apply to any Better Blend business operating or under construction when the Territory is determined. BBF and its affiliates retain the right to do any of the following (all without any compensation to Franchisee):
- (i) establish and license others to establish and operate Better Blend businesses outside the Territory, notwithstanding their proximity to the Territory or their potential impact on the Business;
- (ii) establish and license others to establish and operate Better Blend businesses in Limited Access Venues inside the Territory;
- (iii) operate and license others to operate businesses anywhere, including within the Territory, that sell the same or similar goods or services as a Better Blend business under trademarks or service marks that are not the same as or similar to the Marks;
(iv) sell and license others to sell any products and services in the Territory under any trademarks or service marks (including the Marks) through channels of distribution (including the internet) other than Better Blend;
(iv) acquire or be acquired by (under any form of business transaction) a Competitor that has (or may in the future have) outlets in the Territory which compete with the Business under trademarks or service marks other than the Marks; and
(v) engage in any action not specifically precluded by the express terms of this Agreement.
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 Better Blend Franchising, LLC (BBF) can set delivery boundaries that differ from the defined territory. The document outlines the franchisee's rights within the protected territory, stating that BBF will not establish or license another Better Blend business within the territory, with certain exceptions such as Limited Access Venues. However, it does not specify whether delivery boundaries can be set independently of the territory.
Item 22 of the FDD discusses various aspects of the franchise agreement, including the grant of license, protected territory, covenants not to compete, and other contractual obligations. While the protected territory clause defines the area where BBF will not establish competing businesses, it does not mention the possibility of setting separate delivery boundaries. The agreement also specifies BBF's rights to operate and license businesses outside the territory and through different channels of distribution, but these provisions do not clarify the issue of delivery boundaries.
Given the absence of explicit information regarding delivery boundaries in relation to the territory, it is important for a prospective franchisee to seek clarification from Better Blend. Specifically, the franchisee should inquire about whether BBF has the right to establish delivery boundaries that differ from the protected territory, and if so, under what conditions. Understanding this aspect is crucial for assessing the potential market and operational scope of the franchise.