What is BBF's standard for satisfaction when a Better Blend franchisee attempts to cure a breach?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Better Blend's 2024 Franchise Disclosure Document, when Better Blend agrees to exercise its rights reasonably or in good faith, it will have satisfied its obligations whenever it exercises reasonable business judgment in making a decision or exercising its rights. This means that Better Blend has significant discretion in determining whether a franchisee has adequately addressed a breach of the franchise agreement.
Better Blend's decisions or actions will be considered the result of reasonable business judgment, even if other reasonable or arguably better alternatives exist, if its decision or action is intended to promote or benefit the Better Blend system or brand generally, even if the decision or action also promotes Better Blend's financial or other individual interest. Examples of actions that promote or benefit the Better Blend system 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 Better Blend outlets.
This standard gives Better Blend considerable latitude in deciding whether a franchisee's actions to correct a breach are sufficient. A prospective franchisee should understand that even if they believe they have taken reasonable steps to cure a default, Better Blend could still disagree if it believes its own actions better serve the overall interests of the Better Blend system. This highlights the importance of clear communication and a cooperative relationship between the franchisee and Better Blend to ensure both parties are aligned on what constitutes an acceptable cure.