Does the Better Blend franchise agreement allow for class action lawsuits or arbitrations?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
o liability or obligation of any kind to a Provider arising prior to the effective date of transfer or deletion. Franchisee agrees to take all reasonable steps necessary to effectuate the transfer or deletion (as determined by BBF) of each Brand Account.
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Executed by: [if an individual:] [if an entity:]
EXHIBIT J
STATE ADDENDA TO AGREEMENTS
**ILLINOIS RIDER TO FRANCHISE AGREEMENT [**if applicable: AND MULTI-UNIT DEVELOPMENT AGREEMENT]
This Rider amends the Franchise Agreement [if applicable: and Multi-Unit Development Agreement] dated (the "Agreement"), between Better Blend Franchising, LLC, an Ohio ("BBF") and, a limited liability company ("Franchisee"). 1. Governing Law. Illinois law governs the Agreement. 2. lawsuit filed under any of the pursuant to the provisions of Title 9 of the United States Code. Waivers Void. In conformance with Section 41 of the Illinois Franchise Disclosure Act, notwithstanding any provision of the Agreement to the contrary, any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void. This Section shall not prevent Franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual provisions of this Act, nor shall it prevent the arbitration of any claim 3. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any Jurisdiction. provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the outside of Illinois. State of Illinois is void. However, a franchise agreement may provide for arbitration to occur 4. Franchisee's rights upon Termination and Non-Renewal are Termination/Non-Renewal. set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. 5. Disclaimers. of: (i) waiving any claims under any applicable state franchise law, including fraud document executed in connection with the franchise. No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller or other person acting on behalf of the Franchisor. This provision supersedes any other term of any Agreed to by: BETTER BLEND FRANCHISING, LLC
**INDIANA RIDER TO FRANCHISE AGREEMENT [**if applicable: AND MULTI-UNIT DEVELOPMENT AGREEMENT]
| Agreement] | (the "Agreement"), between Better Blend Franchising, |
|---|---|
| dated | |
| LLC, an Ohio | ("BBF") and, a |
| limited liability company | |
| ("Franchisee"). |
- 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Indiana Acts" means the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
- 2. Certain Provisions Modified. Any provision of the Agreement which would have any of the following effects is hereby modified to the extent required for the Agreement to be in compliance with the Indiana Acts:
- (1) Requiring goods, supplies, inventories, or services to be purchased exclusively from the franchisor or sources designated by the franchisor where such goods, supplies, inventories, or services of comparable quality are available from sources other than those designated by the franchisor. However, the publication by the franchisor of a list of approved suppliers of goods, supplies, inventories, or services or the requirement that such goods, supplies, inventories, or services comply with specifications and standards prescribed by the franchisor does not constitute designation of a source nor does a reasonable right of the franchisor to disapprove a supplier constitute a designation. This subdivision does not apply to the principal goods, supplies, inventories, or services manufactured or trademarked by the franchisor.
- (2) Allowing the franchisor to establish a franchisor-owned outlet engaged in a substantially identical business to that of the franchisee within the exclusive territory granted the franchisee by the franchise agreement; or, if no exclusive territory is designated, permitting the franchisor to compete unfairly with the franchisee within a reasonable area.
- (3) Allowing substantial modification of the franchise agreement by the franchisor without the consent in writing of the franchisee.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
Based on the 2024 Better Blend Franchise Disclosure Document, the franchise agreement's stance on class action lawsuits and arbitrations is not explicitly detailed. However, the document includes several state-specific addenda that address dispute resolution and legal rights, which may impact how such issues are handled.
For instance, the Illinois Rider states that any provision requiring a franchisee to waive compliance with Illinois law is void and that a franchise agreement may provide for arbitration. The Washington Addendum specifies that in arbitration or mediation involving a franchise purchased in Washington, the site will be in Washington or a mutually agreed-upon location. Similarly, the Maryland Rider ensures that franchisees do not waive their right to file a lawsuit under the Maryland Franchise Registration and Disclosure Law in a Maryland court. The Rhode Island Rider states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of other state's laws is void with respect to a claim otherwise enforceable under Rhode Island Franchise Investment Act.
These state-specific clauses suggest that while the core franchise agreement might have standard dispute resolution terms, these are subject to modification based on state laws. This means a Better Blend franchisee's ability to participate in class action lawsuits or arbitrations could vary depending on the state in which they operate. Prospective franchisees should carefully review the addenda applicable to their state and consult with an attorney to understand their rights and obligations regarding dispute resolution.
Article 17, mentioned in the context of the Guaranty, indicates that its dispute resolution provisions are incorporated into the Guaranty as if fully set forth therein. However, without the full text of Article 17, it is impossible to determine whether class action lawsuits are permitted or if arbitration is mandatory. Therefore, prospective franchisees should review Article 17 of the Franchise Agreement to fully understand the dispute resolution process.