Does the Better Blend franchise agreement allow BBF to communicate with the franchisee's lender about the Business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.9 Communications with Landlord and Lenders. Franchisee irrevocably authorizes BBF to communicate with Franchisee's landlord and lender(s), or prospective landlord and lender(s), about matters relating to the Business, and to provide information about the Business to them.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, Better Blend is authorized to communicate with a franchisee's lender about matters relating to the business. Specifically, Better Blend can communicate with both current and prospective lenders.
This clause in the franchise agreement grants Better Blend broad authority to share information about the franchisee's business with lenders. This could include financial performance data, operational details, and other information relevant to the lender's assessment of the franchisee's creditworthiness or the overall health of the business.
For a prospective franchisee, this means that Better Blend has the right to discuss their business with any lender they are working with, which could be beneficial in securing financing. However, it also means that the franchisee relinquishes some control over what information is shared with lenders. Franchisees should consider the implications of this clause and ensure they are comfortable with Better Blend having this level of access and communication with their lenders. It is a fairly standard practice in franchising to allow the franchisor to communicate with the franchisee's lender.