When must a Better Blend franchisee correct deficiencies noted during an inspection?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
System Standards at any time in its discretion. BBF may inform Franchisee thereof by any method that BBF reasonably deems appropriate (which need not qualify as "notice" under Section 18.9). In the event of any dispute as to the contents of the Manual, BBF's master copy will control.
- 11.2 Inspections. BBF may enter the premises of the Business from time to time at any reasonable time (including during normal business hours) and conduct an inspection. Franchisee shall cooperate with BBF's inspectors. BBF will use reasonable efforts to not disrupt Franchisee's
business operations during any such inspection. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. BBF may videotape and/or take photographs of the inspection and the Business. BBF may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting BBF's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee must correct any deficiencies noted during an inspection as soon as reasonably practical. Better Blend has the right to inspect the premises at any reasonable time, including during business hours. The inspection may include observing operations, physical inventory, evaluating conditions, monitoring sales, speaking with employees/customers, and removing samples. Better Blend may also videotape or take photos during the inspection.
Better Blend may set a minimum score for inspections, and failure to meet this score will be a default under the Franchise Agreement. If an inspection is conducted due to a governmental report, customer complaint, or a default/non-compliance with System Standards, Better Blend may charge the franchisee for all out-of-pocket expenses plus its current inspection fee.
This means that a Better Blend franchisee needs to be prepared to address any issues identified during inspections promptly to avoid further action from the franchisor, such as default penalties or additional fees. The term 'as soon as reasonably practical' is subjective, so franchisees should aim for swift correction to demonstrate compliance and maintain a positive relationship with Better Blend.