What happens if a Better Blend franchisee commits a violation of the agreement that cannot be cured?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition (Section 13.2(b)), confidentiality (Section 13.1), indemnity (Article 16), and dispute resolution (Article 17), will remain in effect, and Franchisee must immediately:
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, if the franchise agreement is terminated or expires, obligations related to non-competition, confidentiality, indemnity, and dispute resolution will remain in effect. The franchisee must immediately adhere to these terms. This means that even after the franchise ends, the franchisee is still bound by certain restrictions and responsibilities outlined in the original agreement.
Specifically, the franchisee must not compete with Better Blend, must keep confidential information secret, must cover any losses or damages that Better Blend incurs due to the franchisee's actions, and must follow the procedures for resolving disputes. These obligations are designed to protect Better Blend's interests and ensure fair competition even after the franchise relationship ends.
This is a fairly standard practice in franchising, as franchisors need to protect their brand and trade secrets. Prospective Better Blend franchisees should carefully review these sections of the franchise agreement to understand the full scope of their post-termination obligations. Understanding these long-term responsibilities is crucial for making an informed decision about investing in a Better Blend franchise.