What constitutes a 'reasonable right of the franchisor to disapprove a supplier' for Better Blend franchisees?

According to Better Blend's 2024 Franchise Disclosure Document, when Better Blend agrees to exercise its rights reasonably or in good faith, it will have satisfied its obligations whenever it exercises reasonable business judgment in making a decision or exercising its rights. Better Blend's decisions or actions will be considered the result of reasonable business judgment, even if other reasonable alternatives are available, if Better Blend's decision or action is intended to promote or benefit the System or the Better Blend brand generally, even if the decision or action also promotes Better Blend's financial or other individual interest.

Examples of actions that will promote or benefit the Better Blend system or 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. This means that Better Blend has significant discretion in determining what is considered reasonable, as long as it aligns with the overall benefit of the brand and system, even if it also benefits Better Blend directly.

This clause gives Better Blend broad latitude in supplier approval, as long as their decisions are intended to benefit the brand and system. A prospective franchisee should carefully consider this provision, as it could limit their choice of suppliers and potentially impact their costs and operational flexibility. It is important for franchisees to understand how Better Blend defines 'reasonable business judgment' and to seek clarification on specific criteria used for supplier approval to ensure they can operate their franchise effectively and profitably.