What constitutes an 'Action' according to the Better Blend franchise agreement?
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 the 2024 Better Blend Franchise Disclosure Document, an 'action' by Better Blend Franchising, LLC (BBF) is assessed based on reasonable business judgment. This means that even if other alternatives exist, BBF's decisions are considered acceptable if they aim to benefit the Better Blend system or brand.
Actions that promote or benefit the Better Blend system include enhancing the value of the brand's trademarks, improving customer service and satisfaction, ensuring product quality, maintaining uniformity across locations, encouraging modernization, and strengthening the competitive position of Better Blend outlets. These actions are considered valid even if they also serve BBF's financial or individual interests.
This clause provides Better Blend with considerable latitude in its decision-making, as long as the decisions are intended to benefit the overall system. For a potential franchisee, this means understanding that Better Blend has the authority to make decisions that could impact individual franchise operations, provided those decisions are reasonably aimed at improving the brand as a whole. Franchisees should be aware that Better Blend's interests and the interests of individual franchisees may not always perfectly align, and the franchise agreement allows Better Blend to prioritize the system's overall health.