Is a Better Blend franchisee required to comply with all System Standards?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. BBF and its affiliate Better Blend Nutrition LLC have created and own a system (the "System") for developing and operating a healthy and convenient quick service restaurant specializing in nutritionally complete smoothies and smoothie bowls under the trade name "Better Blend".
- B. The System includes (1) methods, procedures, and standards for developing and operating a Better Blend business, (2) plans, specifications, equipment, signage, and trade dress for Better Blend businesses, (3) particular menu items, beverages, products, and services, (4) the Marks, (5) training programs, (6) business knowledge, (7) marketing plans and concepts, and (8) other mandatory or optional elements as determined by BBF from time to time.
- (a) Menu. Franchisee shall offer all menu items, beverages, and other products and services, and only those menu items, beverages, and other products and services, from time to time prescribed by BBF in the Manual or otherwise in writing.
- (b) Preparation. Franchisee shall follow all recipes prescribed by BBF, including, without limitation, use of all ingredients specified or authorized by BBF, and only such ingredients. Franchisee shall prepare and serve all food products in a high-quality manner that meets or exceeds the customer's reasonable expectations and all applicable System Standards.
- (c) Inventory. Franchisee shall maintain sufficient levels of inventory at all times. BBF has the right to specify minimum levels of inventory as a System Standard.
- 7.7 Technology. Without limiting the generality of Section 7.1 or Section 8.1, Franchisee shall acquire and use all Technology required by BBF. Franchisee shall protect the confidentiality and security of all Technology, and Franchisee shall abide by any System Standards related thereto.
- 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by BBF for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping.
- 7.12 Maintenance, Repair, and Alterations. Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all of the property of the Business in good repair. Franchisee acknowledges that the System Standards may include requirements for cleaning, maintenance, replacement, and repair. Franchisee shall not alter or replace the equipment, fixtures, furniture, signs, décor, or other aspects of the interior or exterior of the Business except in compliance with all applicable System Standards or except with prior approval from BBF.
- 11.11 System Variations. BBF may vary or waive any System Standard for any one or more Better Blend franchises due to the peculiarities of the particular site or circumstances, density of population, business potential, population of trade area, existing business practices, applicable laws or regulations, or any other condition relevant to the performance of a franchise or group of franchises. Franchisee is not entitled to the same variation or waiver.
- (xi) Franchisee fails to meet the health inspection standards described in Section 7.3(e) two or more times in any 36-month period;
- (xii) Franchisee fails to achieve a passing score on an inspection conducted by BBF two or more times in any 36-month period;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, franchisees must adhere to the System Standards. The System includes methods, procedures, and standards for operating a Better Blend business. These standards cover various aspects, such as menu items, preparation methods, inventory levels, and the use of approved third-party delivery services. Franchisees are obligated to offer only the menu items prescribed by Better Blend, follow all recipes, and maintain sufficient inventory levels.
Better Blend franchisees are also required to use approved technology and protect its confidentiality and security. They must participate in programs for customer evaluations and compliance reviews. Franchisees need to maintain the business in a neat and clean condition, performing necessary maintenance and repairs. Furthermore, franchisees must comply with System Standards related to cleaning, maintenance, replacement, and repair, and must not alter the business's appearance without approval, ensuring uniformity across all locations.
Better Blend also has the right to vary or waive any System Standard for any one or more Better Blend franchises due to the peculiarities of the particular site or circumstances. However, franchisees are not entitled to the same variation or waiver. Failure to comply with these standards can lead to consequences, including termination of the franchise agreement if the franchisee fails to meet health inspection standards or achieve a passing score on inspections conducted by Better Blend multiple times within a specified period.