What constitutes a non-curable default for a Better Blend franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
than non-curable | | | | default (30 days to cure). | | h. “Cause” defined--non- | | FA: Misrepresentation when applying to be a | | curable defaults | | | | | | franchisee; knowingly submitting false | | | | information; bankruptcy; fail to open by | | | | specified deadline; lose possession of your | | | | location; violation of law; violation of | | | | confidentiality; violation of non-compete; | | | | violation of ethics and values; violation of | | | | transfer restrictions; slander or libel of us; | | | | refusal to cooperate with our business | | | | inspection; cease operations; operate in a | | | | manner dangerous to health or safety (if not | | | | corrected within 48 hours); score below 90/A | | | | on government health inspections more than | | | | twice in 36 months; score below passing grade | | | | on brand inspection more than twice in 36 | | | | months; three defaults in 12 months; cross- | | | | termination; | | | | a felony, or commission or accusation of an act | | | | that is reasonably likely to materially and | | | | unfavorably affect our brand; any other breach |
| 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. |
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, there are specific actions that constitute a non-curable default, which means the franchisee does not have an opportunity to correct the issue before the franchise agreement is terminated. These defaults include misrepresentation when applying to become a franchisee or knowingly submitting false information. Other non-curable defaults involve serious misconduct or operational failures.
Specifically, non-curable defaults include situations like bankruptcy, failing to open the franchise by the specified deadline, losing possession of the location, or violating laws, confidentiality agreements, or non-compete clauses. Further, engaging in unethical behavior, violating transfer restrictions, slandering or libeling Better Blend, or refusing to cooperate with business inspections are also considered non-curable defaults. Ceasing operations, operating in a manner dangerous to health or safety (if not corrected within 48 hours), receiving failing scores on health or brand inspections, or having multiple defaults within a short period can also trigger termination without an opportunity to cure.
Additionally, committing a felony or being accused of an act that could negatively impact the Better Blend brand, or any other breach of the franchise agreement that cannot be rectified, are considered non-curable defaults. For franchisees entering into a Multi-Unit Development Agreement (MUDA), failure to meet the development schedule or violating the franchise agreement or other agreements that give Better Blend the right to terminate also constitute non-curable defaults. These stipulations highlight the importance of adhering to the franchise agreement and maintaining ethical and operational standards to avoid immediate termination.