Does the Better Blend franchise agreement limit Better Blend's other rights if a franchisee fails an inspection?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
(ix) Franchisee refuses to cooperate with or permit any audit or inspection by BBF or its agents or contractors, or otherwise fails to comply with Section 10.5 or Section 11.2;
(xi) Franchisee fails to meet the health inspection standards described in Section 7.3(e) two or more times in any 36-month period;
(xii) Franchisee fails to achieve a passing score on an inspection conducted by BBF two or more times in any 36-month period;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the franchise agreement outlines specific instances related to inspections that can lead to termination of the agreement, but it does not explicitly state that Better Blend's other rights are limited if a franchisee fails an inspection.
Specifically, the agreement states that Better Blend can terminate the franchise agreement if a franchisee fails to meet health inspection standards described in Section 7.3(e) two or more times in any 36-month period, or if a franchisee fails to achieve a passing score on an inspection conducted by BBF two or more times in any 36-month period.
Additionally, the agreement specifies that refusing to cooperate with or permit any audit or inspection by BBF or its agents or contractors, or otherwise failing to comply with Section 10.5 or Section 11.2, can also result in termination. These stipulations provide Better Blend with recourse in cases of non-compliance, but do not mention limiting other rights.
While the franchise agreement allows Better Blend to terminate the agreement under certain inspection-related failures, the document does not explicitly state that Better Blend's other rights are limited in these situations. A prospective franchisee should seek clarification from Better Blend regarding the full scope of Better Blend's rights and any limitations that may apply in the event of inspection failures.