What ethics and values requirements must a Better Blend franchisee comply with to renew?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
the agreements attached to this disclosure document.**
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| a. Length of the franchise term | Franchise | The term of the franchise agreement is 10 years from date of signing. The MUDA will expire on the date that your last franchise is scheduled to open. |
| Agreement (FA): § | ||
| 3.1 | ||
| Multi-Unit | ||
| Development | ||
| Agreement | ||
| (MUDA): §1(a) | ||
| b. Renewal or extension | FA: § 3.2 | You may obtain a successor franchise |
| of the term | ||
| MUDA: none | agreement for up to two additional 5-year | |
| terms. | ||
| c. Requirements for | For our franchise system, “renewal” means that | |
| franchisee to renew or | ||
| extend | ||
| at the end of your term, you sign our successor | ||
| franchise agreement for an additional five-year | ||
| term. You may be asked to sign a contract with | ||
| materially different terms and conditions than | ||
| your original contract. | ||
| To renew, you must give advance notice to us; | ||
| be in compliance with all contractual | ||
| obligations to us and third parties; renovate to | ||
| our then-current standards; sign then-current | ||
| form of franchise agreement and related | ||
| documents (including personal guaranty); have | ||
| not defaulted more than twice under the | ||
| franchise agreement; complied with all | ||
| requirements of ethics and values; pay renewal | ||
| fee; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, to renew a franchise agreement for an additional five-year term, a franchisee must comply with all requirements of ethics and values. This is one of several conditions that must be met to be eligible for renewal.
Compliance with ethics and values is also a condition to avoid termination of the franchise agreement. Better Blend can terminate the franchise agreement for cause if a franchisee violates ethics and values requirements. This means that maintaining ethical standards and adhering to the brand's values is not only important for renewal but also for the continued operation of the franchise.
While the FDD specifies that compliance with ethics and values is required for renewal, it does not detail the specific ethics and values requirements. A prospective franchisee should request a detailed explanation of these requirements from Better Blend to fully understand what is expected of them.