What are some examples of non-curable defaults that could lead to termination of the Better Blend franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| d. Termination by | FA: § 14.1 | If we violate a material provision of the |
| franchisee | ||
| MUDA: § 4 | franchise agreement and fail to cure or to make | |
| substantial progress toward curing the violation | ||
| within 30 days after notice from you. | ||
| If you sign a MUDA, you may terminate it at | ||
| any time. | ||
| e. Termination by | ||
| franchisor without cause | ||
| f. Termination by | We may terminate your agreement for cause, | |
| franchisor with cause | ||
| subject to any applicable notice and cure | ||
| opportunity. | ||
| If you sign a Multi-Unit Development | ||
| Agreement, termination of your MUDA does | ||
| not give us the right to terminate your franchise | ||
| agreement. However, if your franchise | ||
| agreement is terminated, we have the right to | ||
| terminate your MUDA. | ||
| g. “Cause” defined-- | Non-payment by you (10 days to cure); violate | |
| curable defaults | ||
| franchise agreement other than non-curable | ||
| default (30 days to cure). | ||
| h. “Cause” defined--non- | FA: Misrepresentation when applying to be a | |
| curable defaults | ||
| franchisee; knowingly submitting false | ||
| information; bankruptcy; fail to open by | ||
| specified deadline; lose possession of your | ||
| location; violation of law; violation of | ||
| confidentiality; violation of non-compete; | ||
| violation of ethics and values; violation of | ||
| transfer restrictions; slander or libel of us; | ||
| refusal to cooperate with our business | ||
| inspection; cease operations; operate in a | ||
| manner dangerous to health or safety (if not | ||
| corrected within 48 hours); score below 90/A | ||
| on government health inspections more than | ||
| twice in 36 months; score below passing grade | ||
| on brand inspection more than twice in 36 | ||
| months; three defaults in 12 months; cross- | ||
| termination; | ||
| a felony, or commission or accusation of an act | ||
| that is reasonably likely to materially and | ||
| unfavorably affect our brand; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, certain defaults are considered non-curable and can lead to immediate termination of the franchise agreement. These include misrepresentation when applying to become a franchisee or knowingly submitting false information during the application process. Filing for bankruptcy also constitutes a non-curable default. Failing to open the Better Blend location by the specified deadline outlined in the agreement is another cause for termination without an opportunity to cure.
Further non-curable defaults include losing possession of the Better Blend location, violating any applicable laws, breaching confidentiality agreements, or violating non-compete clauses within the franchise agreement. Any slander or libel against Better Blend, refusal to cooperate with business inspections, or ceasing operations can also result in termination. Operating the Better Blend business in a manner that endangers health or safety, and failing to correct it within 48 hours, is also a non-curable default.
Additionally, receiving failing scores on health or brand inspections can lead to termination. Specifically, scoring below 90/A on government health inspections more than twice in a 36-month period, or scoring below a passing grade on brand inspections more than twice in a 36 month period are non-curable defaults. Committing a felony, or being accused of an act that could negatively impact the Better Blend brand, also constitutes a non-curable default. Finally, any other breach of the franchise agreement that is considered non-curable can result in the termination of the agreement.