What is Better Blend Franchising (BBF) prohibited from doing within the Territory?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
lend business at the Location for the entire term of this Agreement. Franchisee shall exert its best efforts to promote and enhance the Business.
- 2.2 Protected Territory. BBF shall not establish, nor license the establishment of, another business within the Territory (other than a Limited Access Venue) selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend business. This prohibition does not apply to any Better Blend business operating or under construction when the Territory is determined. BBF and its affiliates retain the right to do any of the following (all without any compensation to Franchisee):
- (i) establish and license others to establish and operate Better Blend businesses outside the Territory, notwithstanding their proximity to the Territory or their potential impact on the Business;
- (ii) establish and license others to establish and operate Better Blend businesses in Limited Access Venues inside the Territory;
- (iii) operate and license others to operate businesses anywhere, including within the Territory, that sell the same or similar goods or services as a Better Blend business under trademarks or service marks that are not the same as or similar to the Marks;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend Franchising (BBF) is restricted from establishing or licensing another business within the franchisee's designated territory that offers similar goods or services under the same or similar trademarks as a Better Blend business. This restriction does not apply to Limited Access Venues or any Better Blend business already operating or under construction when the territory is defined. This means that Better Blend aims to protect the franchisee's market area from direct competition from other traditional Better Blend outlets. However, there are several exceptions to this protected territory.
Better Blend retains the right to establish or license Better Blend businesses outside the franchisee's territory, regardless of proximity or potential impact. They can also establish or license businesses in Limited Access Venues (like airports or stadiums) within the territory. Furthermore, Better Blend can operate or license businesses that sell similar goods or services under different trademarks, even within the franchisee's territory. Additionally, Better Blend can sell and license others to sell products and services through different distribution channels, including the internet, even using the same trademarks.
These exceptions significantly limit the scope of the territorial protection. For example, Better Blend could license a similar smoothie and juice concept under a different name within the franchisee's territory, or sell Better Blend-branded products online to customers in the territory. The franchisee's protection is primarily against direct competition from another Better Blend-branded store that is not a Limited Access Venue. A prospective franchisee should carefully consider these limitations and evaluate the potential for competition from other channels and brands affiliated with Better Blend.