Does Better Blend generally own the premises and lease it to the franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.2). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises and lease it to you.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site. You must find a potential site and submit your site to us for
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–27)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, Better Blend generally does not own the premises and lease it to the franchisee. The franchisee is responsible for finding a potential site and submitting it to Better Blend for approval. Better Blend will review and advise the franchisee regarding potential locations that are submitted.
Better Blend specifies that if the site is not already known and approved when the franchise agreement is signed, the area in which the franchisee must select a site will be specified in the franchise agreement. However, Better Blend does not select the site itself. The factors that Better Blend considers when approving sites include the general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
The franchisee is also responsible for conforming the premises to local ordinances and building codes, as well as obtaining any required permits. The FDD states that the time limit for Better Blend to approve or disapprove a proposed site is 30 days after the franchisee submits all required documents and information. If the franchisee and Better Blend cannot agree on a site, the franchisee will be unable to comply with their obligation to develop and open the franchise by the deadline stated in the franchise agreement, potentially leading to a default and termination of the agreement.