What conditions must a Better Blend franchisee meet to develop additional outlets under a Multi-Unit Development Agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Better Blend business, (3) you must be in compliance with all brand requirements at your open Better Blend business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. For each future site, you must sign our then-current form of Franchise Agreement, which may be materially different than the original Franchise Agreement that you signed. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee needs to meet several conditions to develop additional outlets under a Multi-Unit Development Agreement (MUDA). First, the franchisee must adhere to the development schedule that is mutually agreed upon with Better Blend. This means opening new locations according to the timeline established in the MUDA. Second, the franchisee must demonstrate they have the financial resources and organizational capabilities to successfully develop, open, operate, and manage each new Better Blend location. This ensures that franchisees can handle the responsibilities and costs associated with multiple units.
Third, the franchisee must maintain compliance with all brand requirements at their existing Better Blend businesses. This includes adhering to operational standards, marketing guidelines, and other brand-specific rules to ensure consistency across all locations. Finally, the franchisee must not be in default under any other agreement with Better Blend. This means fulfilling all obligations and responsibilities outlined in any existing franchise agreements or other contracts with the company.
Better Blend will also approve the location of future sites, applying their then-current standards for sites and territories. For each new location, the franchisee must sign Better Blend's current form of Franchise Agreement, which may differ materially from the original agreement. While franchisees are not obligated to develop additional outlets under the MUDA and can terminate it without penalty, Better Blend retains the right to terminate the franchisee's right to develop additional outlets if the development schedule is not met.