Can a franchisee terminate the Better Blend MUDA at any time?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5. Limitation of Liability. Franchisee's commitment to develop Better Blend Nutrition businesses is in the nature of an option only. If BBF terminates this MUDA for Franchisee's default, Franchisee shall not be liable to BBF for lost future revenues or profits from the unopened Better Blend Nutrition businesses. Franchisee may terminate this MUDA at any time.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee has the option to terminate the Multi-Unit Development Agreement (MUDA) at any time. This provides a significant degree of flexibility for the franchisee.
However, it's important to note that while the franchisee can terminate the MUDA, Better Blend also has specific conditions under which they can terminate the agreement. These conditions include the franchisee failing to meet the development schedule outlined in the MUDA or if Better Blend has grounds to terminate any other franchise agreement with the franchisee due to a default.
Despite Better Blend's right to terminate the MUDA under certain conditions, the document explicitly states that if Better Blend terminates the MUDA due to the franchisee's default, the franchisee will not be held liable for any lost future revenues or profits from unopened Better Blend Nutrition businesses. This limitation of liability offers some protection to the franchisee in the event of a termination initiated by Better Blend.