Does the Better Blend definition of 'Losses' include lost profits?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Losses" includes (but is not limited to) all losses; damages; fines; charges; expenses; lost profits; reasonable attorneys' fees; travel expenses, expert witness fees; court costs; settlement amounts; judgments; loss of BBF's reputation and goodwill; costs of or resulting from delays; financing; costs of advertising material and media time/space and the costs of changing, substituting or replacing the same; and any and all expenses of recall, refunds, compensation, public notices and other such amounts incurred in connection with the matters described.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the definition of 'Losses' explicitly includes lost profits. This definition is important because it outlines the types of financial damages Better Blend may seek from a franchisee in case of a breach of contract or other legal claim.
Specifically, the definition of 'Losses' is broad and encompasses various financial detriments, including direct damages, fines, and legal fees. The inclusion of 'lost profits' means that if a franchisee's actions cause Better Blend to lose anticipated future earnings, Better Blend can seek compensation for those lost earnings as part of its damages. This could arise, for example, if the franchisee violates a non-compete agreement or otherwise damages Better Blend's brand reputation.
For a prospective Better Blend franchisee, this definition highlights the potential financial risks associated with non-compliance or actions that harm the franchise system. It is crucial to understand the full scope of potential liabilities and to operate the franchise in a manner that minimizes the risk of causing financial harm to Better Blend. Franchisees should seek legal counsel to fully understand their obligations and potential exposure under the franchise agreement.