What must a Better Blend franchisee provide to BBF regarding the terms of a proposed transfer?

According to Better Blend's 2024 Franchise Disclosure Document, a franchisee (or its owners) must provide Better Blend with a copy of the terms and conditions of any transfer before engaging in said transfer. This requirement does not apply under certain conditions, such as a transfer to a corporation or limited liability company for convenience of ownership, a transfer to a co-owner, or a transfer to a spouse, sibling, or child of an owner. This stipulation is part of Better Blend's right of first refusal.

This requirement allows Better Blend to review the proposed transfer terms and potentially exercise its right of first refusal. The right of first refusal enables Better Blend to maintain control over who enters the franchise system and ensures that any new franchisee meets their standards.

For a prospective Better Blend franchisee, this means that if they plan to sell their franchise to a third party, they must first disclose all the details of the proposed sale to Better Blend. This includes the price, payment terms, and any other conditions of the sale. Better Blend then has the option to purchase the franchise on the same terms, effectively blocking the sale to the third party if they choose to do so. Franchisees should be aware of this clause as it could impact their ability to sell the franchise to their preferred buyer.