Can a Better Blend franchisee terminate a Multi-Unit Development Agreement (MUDA) at any time?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | |
|---|---|---|
| or other agreement | ||
| d. Termination by | FA: § 14.1 | If we violate a material provision of the |
| franchisee | ||
| MUDA: § 4 | franchise agreement and fail to cure or to make | |
| substantial progress toward curing the violation | ||
| within 30 days after notice from you. | ||
| If you sign a MUDA, you may terminate it at | ||
| any time. |
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, a franchisee who signs a Multi-Unit Development Agreement (MUDA) has the right to terminate it at any time. This provides a significant degree of flexibility for the franchisee.
This termination right is a notable benefit for franchisees, as it allows them to exit the development agreement if their circumstances change or if they encounter unforeseen challenges in developing multiple units. It is important to note that while the franchisee can terminate the MUDA at any time, the FDD also states that termination of the MUDA by the franchisee does not give Better Blend the right to terminate the franchise agreement. However, if the franchise agreement is terminated, Better Blend has the right to terminate the MUDA.
This provision should be carefully considered by prospective franchisees, as it offers a level of control over the development process. Franchisees should consult with legal counsel to fully understand the implications of this termination right and how it interacts with other provisions of the franchise agreement and MUDA.