What is the definition of 'Territory' in the Better Blend franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Blend | This Location Acceptance Letter is issued by Better Blend Franchising, LLC | for your Better |
|---|---|---|
| franchise in accordance with Section 6.1 of the Franchise Agreement. | ||
| 1. | The Location of the Business is: | |
| 2. | The Territory of the Business is: | BETTER BLEND FRANCHISING, LLC By: Name: Title: Date: |
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. BBF grants to Franchisee the right to operate a Better Blend business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Better Blend business at the Location for the entire term of this Agreement. Franchisee shall exert its best efforts to promote and enhance the Business.
- 2.2 Protected Territory. BBF shall not establish, nor license the establishment of, another business within the Territory (other than a Limited Access Venue) selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend business. This prohibition does not apply to any Better Blend business operating or under construction when the Territory is determined. BBF and its affiliates retain the right to do any of the following (all without any compensation to Franchisee):
- (i) establish and license others to establish and operate Better Blend businesses outside the Territory, notwithstanding their proximity to the Territory or their potential impact on the Business;
- (ii) establish and license others to establish and operate Better Blend businesses in Limited Access Venues inside the Territory;
- (iii) operate and license others to operate businesses anywhere, including within the Territory, that sell the same or similar goods or services as a Better Blend business under trademarks or service marks that are not the same as or similar to the Marks;
(iv) sell and license others to sell any products and services in the Territory under any trademarks or service marks (including the Marks) through channels of distribution (including the internet) other than Better Blend;
(iv) acquire or be acquired by (under any form of business transaction) a Competitor that has (or may in the future have) outlets in the Territory which compete with the Business under trademarks or service marks other than the Marks; and
(v) engage in any action not specifically precluded by the express terms of this Agreement.
If the Franchise Agreement is terminated before the Territory is determined, then the area of non-competition will be the Site Selection Area and within five miles territory of any other Better Blend business operating on the date of termination. If a given Better Blend business does not have a defined territory, then for purposes of this Section its territory will be deemed to be a 3-mile radius.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the franchise agreement grants the franchisee the right to operate a Better Blend business solely at the specified location. Better Blend will not establish or license another business within the Territory (excluding Limited Access Venues) that sells similar goods or services under the same trademarks. This protection does not extend to Better Blend businesses already operating or under construction when the Territory is determined.
Better Blend retains the right to establish or license Better Blend businesses outside the Territory, even if they are near the Territory or impact the franchisee's business. They can also establish businesses in Limited Access Venues within the Territory. Better Blend can operate or license businesses that sell similar goods or services under different trademarks, even within the Territory. Additionally, Better Blend can sell products and services through other distribution channels, including the internet, within the Territory under any trademarks, including the Better Blend marks.
Better Blend also reserves the right to acquire or be acquired by a competitor with outlets in the Territory that compete with the franchisee's business under different trademarks. They can also engage in any action not specifically prohibited by the franchise agreement. The Location and Territory of the Business are documented in the Location Acceptance Letter.
If the Franchise Agreement is terminated before the Territory is determined, the non-competition area will be the Site Selection Area and within five miles of any other Better Blend business. If a Better Blend business lacks a defined territory, its territory will be considered a 3-mile radius for non-competition purposes.