What is the consequence if a Better Blend franchisee or owner is accused by any governmental authority?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
(xv) Franchisee or any Owner is charged with, pleads guilty or no-contest to, or is convicted of a felony; or
(xvi) Franchisee or any Owner is accused by any governmental authority or third party of any act, or if Franchisee or any Owner commits any act or series of acts, that in BBF's opinion is reasonably likely to materially and unfavorably affect the Better Blend brand.
14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition (Section 13.2(b)), confidentiality (Section 13.1), indemnity (Article 16), and dispute resolution (Article 17), will remain in effect, and Franchisee must immediately:
(i) pay all amounts owed to BBF based on the operation of the Business through the effective date of termination or expiration;
(ii) return to BBF all copies of the Manual, Confidential Information and any and all other materials provided by BBF to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items (to the extent in the possession or control of Franchisee); and delete all Confidential Information and proprietary materials from electronic d
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee or any owner is accused by any governmental authority or third party of any act, or commits any act or series of acts, that Better Blend believes is reasonably likely to materially and unfavorably affect the Better Blend brand, it can lead to termination of the franchise agreement.
Upon termination of the agreement, the franchisee must immediately cease operations and fulfill certain obligations. These obligations include paying all amounts owed to Better Blend, returning all copies of the Manual, Confidential Information, and any other materials provided by Better Blend, as well as deleting all Confidential Information and proprietary materials from electronic devices.
Additionally, obligations related to non-competition, confidentiality, indemnity, and dispute resolution will remain in effect even after termination. This means the franchisee may still be bound by restrictions on operating a competing business and must continue to protect Better Blend's confidential information.