Is a Better Blend franchisee likely to face competition from other franchisees?
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.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
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 other franchisees. While Better Blend grants a protected territory, it is not an exclusive territory. This means that while Better Blend will not establish another company-owned or franchised outlet selling the same or similar goods or services under the same trademarks within the franchisee's territory, competition from other franchisees is still possible. The 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 the franchise is in a limited access venue, the protected territory consists solely of that venue.
Better Blend also retains the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within the franchisee's territory. Better Blend does not pay any compensation to the franchisee for soliciting or accepting orders from inside the franchisee's territory. This could impact a franchisee's potential revenue, as customers within their territory could purchase directly from Better Blend through these alternative channels.
If a franchisee signs a Multi-Unit Development Agreement (MUDA), they are granted exclusive development rights until the date on which they are to open their final Better Blend location. During this development period, Better Blend will not establish another company-owned or franchised outlet in the franchisee's development area. However, this exclusivity is contingent on meeting the development schedule and compliance with all agreements. Failure to meet the schedule or a default under any franchise agreement could result in the loss of territorial exclusivity.