What constitutes a breach of the Better Blend franchise agreement that is not related to payment or a non-curable event?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
mits any other violation of this Agreement which by its nature cannot be cured;
- (vii) Franchisee ceases operation of the Business for more than five consecutive days, or BBF reasonably concludes that Franchisee has ceased operation of the Business;
- (viii) Franchisee or any Owner slanders or libels BBF or any of its employees, directors, or officers;
- (ix) Franchisee refuses to cooperate with or permit any audit or inspection by BBF or its agents or contractors, or otherwise fails to comply with Section 10.5 or Section 11.2;
- (x) the Business is operated in a manner which, in BBF's reasonable judgment, constitutes a significant danger to the health or safety of any person, and Franchisee fails to cure such danger within 48 hours after becoming aware of the danger (due to notice from BBF or otherwise);
- (xi) Franchisee fails to meet the health inspection standards described in Section 7.3(e) two or more times in any 36-month period;
- (xii) Franchisee fails to achieve a passing score on an inspection conducted by BBF two or more times in any 36-month period;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, several actions can lead to a breach of the franchise agreement, excluding non-curable events and failure to pay. These breaches provide Better Blend with grounds for terminating the agreement if not resolved.
Specifically, a franchisee may be in breach if they refuse to cooperate with or permit audits or inspections by Better Blend or its agents, or if they fail to comply with sections related to inspections. Repeatedly failing health inspections or receiving failing scores on Better Blend's inspections within a 36-month period also constitutes a breach. Furthermore, receiving multiple notices of default and then committing another breach within a 12-month period can lead to termination.
Other notable breaches include the franchisee or any owner being charged with or convicted of a felony, or engaging in any action that could negatively impact the Better Blend brand. These stipulations highlight the importance of adhering to operational standards, maintaining a clean record, and protecting the brand's reputation to avoid potential termination of the franchise agreement.