Does a Better Blend franchisee have any territorial rights to the Site Selection Area?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
If this Agreement is terminated before the Territory is determined, then the area of non-competition will be the Site Selection Area and within five miles territory of any other Better Blend business operating on the date of termination. If a given Better Blend business does not have a defined territory, then for purposes of this Section its territory will be deemed to be a 3-mile radius.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, a franchisee's territorial rights within the Site Selection Area are conditional and primarily related to non-competition after termination, before a territory is formally defined.
Specifically, if the Franchise Agreement is terminated before the territory is determined, the area of non-competition for the franchisee is limited to the Site Selection Area and extends five miles from any other operating Better Blend business. This implies that while the agreement is active and before a defined territory is established, the franchisee's protection is limited to preventing competition from the franchisee or its owners within that immediate Site Selection Area and a buffer zone around other Better Blend locations.
If a Better Blend business does not have a defined territory, the non-compete area is considered a 3-mile radius around that business. This suggests that the Site Selection Area does not automatically grant exclusive rights against Better Blend itself or other franchisees, but mainly restricts the franchisee from engaging in a competitive business in that area if the agreement is terminated early. This is a fairly typical arrangement in the franchise industry, where franchisors often retain the right to establish new locations as they see fit, unless explicitly restricted by a protected territory agreement.