How can Better Blend exercise its right of first refusal for a proposed transfer?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee (or its Owners) shall provide to BBF a copy of the terms and conditions of any Transfer.
For a period of 30 days from the date of BBF's receipt of such copy, BBF will have the right, exercisable by notice to Franchisee, to purchase the assets subject of the proposed Transfer for the same price and on the same terms and conditions (except that if some or all of the purchase price is not payable in cash, BBF may pay the equivalent value in cash for the purchase price).
If BBF does not exercise its right of first refusal, Franchisee may proceed with the Transfer, subject to the other terms and conditions of this Article.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee intends to transfer their franchise, they must provide Better Blend with a copy of the terms and conditions of the proposed transfer. Better Blend then has 30 days from the date they receive this copy to exercise their right of first refusal.
To exercise this right, Better Blend must notify the franchisee of its intent to purchase the assets subject to the proposed transfer. The purchase will be for the same price and under the same terms and conditions as the proposed transfer. However, if the original purchase price involves non-cash payments, Better Blend has the option to pay the equivalent value in cash.
If Better Blend decides not to exercise its right of first refusal within the 30-day period, the franchisee is then permitted to proceed with the transfer, provided they adhere to all other terms and conditions outlined in the franchise agreement.