Is the Better Blend Franchisee responsible for the actions of its personnel?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ave the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
- 12.4 Name. If Franchisee is an entity, it shall not use the word[s] "Better Blend", "Better Blend" or any confusingly similar words in its legal name.
ARTICLE 13. COVENANTS
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all procedures prescribed by BBF for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business, (c) not use any such information in any other business or in any manner not specifically authorized in
writing by BBF, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by BBF (except for Confidential Information which BBF licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
Based on the 2024 Better Blend Franchise Disclosure Document, while the document doesn't explicitly state that the franchisee is responsible for the actions of its personnel, it does outline several obligations and responsibilities of the franchisee that imply accountability for their business's operations and conduct.
Specifically, the franchisee is required to adhere to procedures prescribed by Better Blend for maintaining the confidentiality of information and to disclose such information to its employees only to the extent necessary for the business's operation. The franchisee must also pay all vendors and suppliers in a timely manner and comply with their lease for the location, including making all rent payments when due. Furthermore, the franchisee is obligated to operate the Better Blend business according to the standards set by Better Blend and exert their best efforts to promote and enhance the business.
These stipulations suggest that Better Blend franchisees are expected to manage their business, including their employees, in a way that aligns with Better Blend's standards and legal requirements. While the FDD does not have a section that explicitly states the franchisee is liable for the actions of its personnel, the franchisee's broad responsibilities would likely extend to ensuring their employees' conduct aligns with the franchise agreement and applicable laws.