As a Better Blend franchisee, am I required to devote substantial time and attention to my business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
Your Participation
You must devote substantial time and attention to your business.
If you are the sole owner of the business, then you are deemed to be the "Principal; Executive". If the business is owned through a corporation or limited liability company, you must designate one owner as your "Principal Executive". The Principal Executive is the owner primarily responsible for the business and has decision-making authority on behalf of the business. The Principal Executive must own at least 30% of the business. The Principal Executive must complete our initial training program. The Principal Executive must complete any post-opening training programs that we develop in the future. The Principal Executive must make reasonable efforts to attend all in-person meetings and remote meetings (such as telephone or video conference calls),
including regional or national brand conferences, that we require. The Principal Executive cannot fail to attend more than three consecutive required meetings.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 32–33)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, franchisees must devote substantial time and attention to their Better Blend business. If the franchisee is the sole owner, they are considered the "Principal Executive." If the business is owned by a corporation or LLC, the franchisee must designate one owner as the Principal Executive, who must own at least 30% of the business and have decision-making authority.
The Principal Executive is required to complete the initial training program and any future post-opening training programs. They must also make reasonable efforts to attend all in-person and remote meetings, including regional or national brand conferences. The Principal Executive cannot miss more than three consecutive required meetings.
This requirement ensures that Better Blend franchisees are actively involved in managing and operating their business, maintaining brand standards, and participating in ongoing training and communication with the franchisor. This hands-on approach is common in the franchise industry, as it helps to ensure consistency and quality across all locations. The 30% ownership requirement for the Principal Executive in entity-owned businesses aligns incentives and ensures commitment to the success of the Better Blend franchise.