Is a Better Blend franchisee required to renovate to current standards to renew their franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
the agreements attached to this disclosure document.**
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| a. Length of the franchise term | Franchise | The term of the franchise agreement is 10 years from date of signing. The MUDA will expire on the date that your last franchise is scheduled to open. |
| Agreement (FA): § | ||
| 3.1 | ||
| Multi-Unit | ||
| Development | ||
| Agreement | ||
| (MUDA): §1(a) | ||
| b. Renewal or extension | FA: § 3.2 | You may obtain a successor franchise |
| of the term | ||
| MUDA: none | agreement for up to two additional 5-year | |
| terms. | ||
| c. Requirements for | For our franchise system, “renewal” means that | |
| franchisee to renew or | ||
| extend | ||
| at the end of your term, you sign our successor | ||
| franchise agreement for an additional five-year | ||
| term. You may be asked to sign a contract with | ||
| materially different terms and conditions than | ||
| your original contract. | ||
| To renew, you must give advance notice to us; | ||
| be in compliance with all contractual | ||
| obligations to us and third parties; renovate to | ||
| our then-current standards; sign then-current | ||
| form of franchise agreement and related | ||
| documents (including personal guaranty); have | ||
| not defaulted more than twice under the | ||
| franchise agreement; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees must renovate to the then-current standards to renew their franchise agreement. To renew the franchise agreement for an additional five-year term, a franchisee must provide advance notice, be compliant with all contractual obligations to Better Blend and third parties, and sign the then-current form of the franchise agreement and related documents, including a personal guaranty.
In addition to renovations and signing the current franchise agreement, the franchisee must not have defaulted more than twice under the franchise agreement and must have complied with all requirements of ethics and values. The franchisee is also required to pay a renewal fee and sign a general release, unless prohibited by applicable law.
If a Better Blend franchisee continues to operate their franchise after the expiration of the term without a renewal agreement, Better Blend has the option to terminate the operation at any time or deem the agreement renewed for a five-year term and collect the renewal fee. This highlights the importance of adhering to the renewal terms outlined in the franchise agreement to avoid potential disruptions or unexpected financial obligations.