What conditions must be met for Better Blend to approve a transfer of the franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | of franchise agreement which by its nature cannot be cured. MUDA: failure to meet development schedule; violation of franchise agreement or other agreement which gives us the right to terminate it. | |
| i. Franchisee’s obligations | Pay all amounts due; return Manual and | |
| on termination/non- | ||
| renewal | proprietary items; cancel assumed names; cancel or transfer phone, post office boxes, directory listings and digital marketing accounts; cease doing business; remove identification; purchase option by us. | |
| j. Assignment of contract | FA: § 15.1 | Unlimited Unlimited |
| by franchisor | MUDA: § 7 | |
| k. “Transfer” by | FA: Article 1 | For you (or any owner of your business) to |
| franchisee - defined | ||
| MUDA: Background | voluntarily or involuntarily transfer, sell, or | |
| Statement | dispose of, in any single or series of transactions, (i) substantially all of the assets of the business, (ii) the franchise agreement, (iii) any direct or indirect ownership interest in the business, or (iv) control of the business. | |
| l. Franchisor’s approval of | FA: § 15.2 | No transfers without our approval. No transfers without our approval. |
| transfer by franchisee | MUDA: § 7 | |
| m. Conditions for | FA: § 15.2 | Pay transfer fee; buyer meets our standards; |
| franchisor’s approval of | ||
| transfer | ||
| MUDA: none | buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release (subject to state law); business complies with then-current system specifications (including remodel, if applicable). | |
| n. Franchisor’s right of | If you want to transfer your business (other | |
| first refusal to acquire | ||
| franchisee’s business | than to your co-owner or your spouse, sibling, or child), we have a right of first refusal. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee needs to meet several conditions to get approval for a franchise transfer. Better Blend must grant approval before any transfer can occur.
The conditions include paying a transfer fee, ensuring the buyer meets Better Blend's standards, and confirming that the buyer is not a competitor. Additionally, the buyer and their owners must sign the then-current franchise agreement and related documents, including a personal guaranty.
The franchisee must have made all payments due to Better Blend and be in compliance with all contractual requirements. The buyer is also required to complete the training program. The franchisee must sign a general release, subject to state law, and the business must comply with the then-current system specifications, including any required remodeling.
These stipulations are typical in franchising, as they allow Better Blend to maintain brand standards and ensure that any new franchisee is well-prepared and financially stable. The right of first refusal allows Better Blend to control who enters their system, which is a common practice to protect the brand and existing franchisees.