Is a Better Blend franchisee likely to face competition from company-owned outlets?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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Territory Protection
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
In your franchise agreement, we grant you a protected territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend outlet, except for restaurants located in limited access venues (meaning venues that serve primarily the customers located within a facility, such as enclosed shopping centers, universities, churches and other religious institutions, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes and restricted business complexes).
If your franchise is located in a "limited access venue", then your protected territory will consist solely of the venue.
If you sign a MUDA, we grant you an exclusive development until the date on which you are to open your final Better Blend location. In your development area, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend outlet. You will lose your territorial exclusivity if you fail to meet your development schedule, or if we terminate the MUDA because of your default under a franchise agreement.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee may face competition from company-owned outlets. While Better Blend grants a protected territory, this protection is not absolute. Better Blend retains the right to establish company-owned outlets, potentially creating direct competition for franchisees. This is a crucial consideration for prospective franchisees as it can directly impact their revenue and market share.
However, the FDD specifies that Better Blend will not establish company-owned or franchised outlets selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend outlet within the franchisee's protected territory. An exception to this is for restaurants located in limited access venues such as enclosed shopping centers, universities, churches and other religious institutions, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes and restricted business complexes. If a Better Blend franchise is located in a limited access venue, the protected territory consists solely of that venue.
Better Blend also does not restrict itself from soliciting or accepting orders from consumers inside a franchisee's territory through other channels of distribution like the internet or telemarketing. This means that even with a protected territory, a franchisee could still face competition from Better Blend's corporate online sales or marketing efforts. Furthermore, Better Blend retains the right to use different trademarks for these other channels, adding another layer of potential competition. Therefore, franchisees should carefully evaluate the potential impact of these competitive factors on their business before investing in a Better Blend franchise.