Where must a Better Blend franchisee operate their Better Blend business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1 Grant. BBF grants to Franchisee the right to operate a Better Blend business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Better Blend business at the Location for the entire term of this Agreement. Franchisee shall exert its best efforts to promote and enhance the Business.
- 2.2 Protected Territory. BBF shall not establish, nor license the establishment of, another business within the Territory (other than a Limited Access Venue) selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend business. This prohibition does not apply to any Better Blend business operating or under construction when the Territory is determined. BBF and its affiliates retain the right to do any of the following (all without any compensation to Franchisee):
- (i) establish and license others to establish and operate Better Blend businesses outside the Territory, notwithstanding their proximity to the Territory or their potential impact on the Business;
- (ii) establish and license others to establish and operate Better Blend businesses in Limited Access Venues inside the Territory;
- (iii) operate and license others to operate businesses anywhere, including within the Territory, that sell the same or similar goods or services as a Better Blend business under trademarks or service marks that are not the same as or similar to the Marks;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee is granted the right to operate their Better Blend business solely at the location specified in the Franchise Agreement. The agreement states that if no location is specified when the agreement is signed, the location will be determined later, according to a separate section of the agreement. The franchisee is obligated to develop, open, and operate the Better Blend business at this designated location for the entire term of the Franchise Agreement.
This means that a prospective Better Blend franchisee must secure an approved location to operate their business. The franchisee cannot operate the business from any other location without violating the Franchise Agreement. This requirement ensures that Better Blend maintains control over its brand image and service standards at approved sites.
Better Blend also grants the franchisee a protected territory, within which Better Blend will not establish or license another business selling similar goods or services under the same trademarks. However, this protection does not extend to 'Limited Access Venues' within the territory, or to businesses operating or under construction when the territory is determined. Better Blend retains the right to establish or license Better Blend businesses outside the franchisee's territory, regardless of their proximity or potential impact. They can also operate businesses anywhere, including within the territory, that sell similar goods or services under different trademarks.
This territorial agreement has some limitations. Better Blend retains significant flexibility to operate or license other businesses that may compete with the franchisee's business, particularly outside the defined territory or within Limited Access Venues. A prospective franchisee should carefully consider these limitations and evaluate the potential for competition from other Better Blend outlets or related businesses when assessing the viability of a specific location.