Is a Better Blend franchisee required to offer all services that Better Blend requires?
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;
(iv) sell and license others to sell any products and services in the Territory under any trademarks or service marks (including the Marks) through channels of distribution (including the internet) other than Better Blend;
(iv) acquire or be acquired by (under any form of business transaction) a Competitor that has (or may in the future have) outlets in the Territory which compete with the Business under trademarks or service marks other than the Marks; and
(v) engage in any action not specifically precluded by the express terms of this Agreement.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 33–34)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are granted the right to operate a Better Blend business solely at their specified location. The franchisee is expected to develop, open, and operate the Better Blend business for the entire term of the agreement and must exert their best efforts to promote and enhance the business. This indicates a requirement to offer the core services that define a Better Blend business.
Better Blend's System includes methods, procedures, and standards for operating the business, plans and specifications for the locations, specific menu items, beverages, products, and services, the brand's trademarks, training programs, business knowledge, and marketing plans. The franchise agreement specifies that the franchisee must not engage in any business or activity at the location other than the operation of the Better Blend business. This clause ensures that franchisees focus exclusively on the Better Blend concept and do not dilute the brand by offering unrelated products or services.
While Better Blend retains the right to refine and develop products or services that franchisees will offer, the franchise agreement does not explicitly obligate Better Blend to do so. However, franchisees are expected to adhere to the Better Blend System, which includes particular menu items, beverages, products, and services. Therefore, a Better Blend franchisee is required to offer the services that Better Blend mandates as part of its established system to maintain brand consistency and customer expectations.