Can a Better Blend franchisee offset or deduct from payments owed to Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
fees).
- (f) Application. BBF may apply any payment received from Franchisee to any obligation and in any order as BBF may determine, regardless of any designation by Franchisee.
- (g) Obligations Independent; No Set-Off. The obligations of Franchisee to pay to BBF any fees or amounts described in this Agreement are not dependent on BBF's performance and are independent covenants by Franchisee. Franchisee shall make all such payments without offset or deduction.
- (h) Taxes. Franchisee will be responsible for (and shall immediately remit to BBF upon demand) all sales taxes, use taxes, and other taxes imposed on the fees payable by Franchisee to BBF or its affiliates and on services or goods furnished to Franchisee by BBF or its affiliates, unless the tax is an income tax assessed on BBF or its affiliate for doing business in the state where the Business is located.
ARTICLE 5. ASSISTANCE
5.1 Manual. BBF shall make its Manual available to Franchisee in such format as BBF deems appropriate.
5.2 Pre-Opening Assistance.
- (a) Selecting Location.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee is obligated to make all payments to Better Blend without any reductions or offsets. The agreement specifies that the franchisee's payment obligations are independent of Better Blend's performance and are considered independent covenants. This means a franchisee cannot withhold payments due to any perceived failure on Better Blend's part to fulfill its obligations.
Better Blend also has the right to apply any payment received from the franchisee to any obligation in any order it determines, regardless of any designation made by the franchisee. This gives Better Blend significant control over how payments are allocated, ensuring that outstanding debts are managed according to their priorities.
This clause protects Better Blend's revenue stream, ensuring consistent and timely payments from franchisees. For a prospective franchisee, this means they must be prepared to meet all financial obligations to Better Blend, irrespective of any disputes or issues they may encounter. Failure to comply with these payment terms can result in late fees of $100 and interest on the unpaid amount at a rate of 18% per year, as well as liability for Better Blend's costs of collection and enforcement, including reasonable attorney fees.