Does the Better Blend franchise agreement specify any damages that are expressly authorized?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor shall pay to BBF all costs incurred by BBF (including reasonable
attorney fees) in enforcing this Guaranty. If multiple Guarantors sign this Guaranty, each will have joint and several liability.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Guarantor shall cover all costs incurred by BBF, including reasonable attorney fees, when enforcing the Guaranty. If there are multiple Guarantors, each will have joint and several liability.
This means that if a Better Blend franchisee defaults on their obligations and Better Blend Franchising, LLC has to take legal action to enforce the Guaranty, the franchisee (or the Guarantor) is responsible for covering Better Blend's legal expenses, including attorney fees. This could potentially add a significant financial burden on the franchisee in addition to any other damages or costs resulting from the breach of contract.
The inclusion of such a clause is fairly standard in franchise agreements, as it aims to protect the franchisor from incurring losses due to legal battles arising from a franchisee's non-compliance. Prospective franchisees should carefully consider this aspect and factor in potential legal costs when evaluating the financial risks associated with the Better Blend franchise.