How does Better Blend determine the territory granted to a franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 150,000 people (combined population of work and residual). Your territory will usually be specified as a radius around your location. If your business location is not known when you sign your franchise agreement, then we will state your location and territory in a "Location Acceptance Letter" when we approve your location.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
In your franchise agreement, we grant you a protected territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend outlet, except for restaurants located in limited access venues (meaning venues that serve primarily the customers located within a facility, such as enclosed shopping centers, universities, churches and other religious institutions, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes and restricted business complexes).
If your franchise is located in a "limited access venue", then your protected territory will consist solely of the venue.
If you sign a MUDA, we grant you an exclusive development until the date on which you are to open your final Better Blend location. In your development area, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend outlet. You will lose your territorial exclusivity if you fail to meet your development schedule, or if we terminate the MUDA because of your default under a franchise agreement.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the territory granted to a franchisee is determined by Better Blend. The territory will have an approximate population of 150,000 people, combining the work and residual populations. The territory is typically defined as a radius around the franchisee's specific location. If the location is not known when the franchise agreement is signed, the location and territory details will be specified in a Location Acceptance Letter once Better Blend approves the site.
Better Blend's FDD indicates that franchisees do not receive an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels or competitive brands controlled by Better Blend. However, Better Blend grants a protected territory in the franchise agreement, where they will not establish another company-owned or franchised outlet selling similar goods or services under the same trademarks, except for restaurants in limited access venues. If the franchise is in a limited access venue, the protected territory consists solely of that venue.
For franchisees who sign a Multi-Unit Development Agreement (MUDA), Better Blend grants exclusive development rights until the opening date of the final Better Blend location. During this development period, Better Blend will not establish company-owned or franchised outlets selling similar goods or services in the development area. However, this territorial exclusivity is contingent on meeting the development schedule outlined in the MUDA and compliance with all franchise agreement terms. Failure to meet the development schedule or any default under the franchise agreement can result in the loss of territorial exclusivity.