What happens if a Better Blend franchisee develops an idea related to the business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
"), and Franchisee effective as of the date signed by BBF (the "Effective Date").
Background Statement:
- A. BBF and its affiliate Better Blend Nutrition LLC have created and own a system (the "System") for developing and operating a healthy and convenient quick service restaurant specializing in nutritionally complete smoothies and smoothie bowls under the trade name "Better Blend".
- B. The System includes (1) methods, procedures, and standards for developing and operating a Better Blend business, (2) plans, specifications, equipment, signage, and trade dress for Better Blend businesses, (3) particular menu items, beverages, products, and services, (4) the Marks, (5) training programs, (6) business knowledge, (7) marketing plans and concepts, and (8) other mandatory or optional elements as determined by BBF from time to time.
- C. The parties desire that BBF license the Marks and the System to Franchisee for Franchisee to develop and operate a Better Blend business on the terms and conditions of this Agreement.
ARTICLE 1. DEFINITIONS
- "Action" means any action, suit, proceeding, claim, demand, governmental investigation, governmental inquiry, or judgment or appeal thereof, whether formal or informal.
- "Adjusted Gross Sales" means the total dollar amount of all sales generated through the Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit, and any proceeds of business interruption insurance.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
Based on the 2024 Better Blend Franchise Disclosure Document, the franchise agreement stipulates that Better Blend and its affiliate, Better Blend Nutrition LLC, own the system for operating a healthy quick-service restaurant specializing in smoothies and smoothie bowls. This system encompasses methods, procedures, standards, plans, specifications, equipment, signage, trade dress, menu items, beverages, products, services, the Marks, training programs, business knowledge, and marketing plans. The agreement grants Better Blend broad rights to modify and control the system.
According to the franchise agreement, Better Blend may modify or waive any system standard for any one or more Better Blend franchises due to the peculiarities of the particular site or circumstances, density of population, business potential, population of trade area, existing business practices, applicable laws or regulations, or any other condition relevant to the performance of a franchise or group of franchises. However, the franchisee is not entitled to the same variation or waiver. Better Blend also retains the right to operate, administrate, develop, and change the system in any manner that is not specifically precluded by the agreement.
While the FDD does not explicitly state what happens if a franchisee develops a new idea related to the Better Blend business, it does emphasize that the franchisor has the right to control and modify the system. Therefore, any new ideas or improvements developed by a franchisee would likely fall under the franchisor's ownership and control. The franchisee would need to get approval from Better Blend to implement any changes to the system. A prospective franchisee should inquire with the franchisor about the process for submitting new ideas and the potential for the franchisee to benefit from those ideas if they are adopted system-wide.