What happens if the Principal Executive of a Better Blend franchise dies or becomes incapacitated?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.13 Temporary Management. If (i) the Principal Executive dies or becomes incapacitated, (ii) this Agreement is terminated or expires and BBF elects to purchase assets of the Business as provided in Section 14.6, or (iii) Franchisee is operating the Business in a manner which, in BBF's reasonable opinion, constitutes a danger to the health or safety of any person, then BBF may (but is not obligated to) enter the Location and operate and manage the Business for Franchisee's (or Franchisee's estate's) account until this Agreement is terminated, the Business is transferred, the Business is purchased by BBF, or BBF returns the Business to Franchisee.
BBF's operation and management will not continue for more than 90 days without Franchisee's consent (or the consent of the representatives of Franchisee's estate).
If this Agreement has not terminated or expired, then BBF will account to Franchisee for all net income from the Business during the period in which BBF operates the Business.
BBF may collect a temporary management fee equal to 10% of Adjusted Gross Sales for the period in which BBF operates the Business, plus all expenses
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if the Principal Executive of a franchise dies or becomes incapacitated, Better Blend has the option to step in and manage the business. Specifically, Better Blend may enter the location and operate and manage the business on behalf of the franchisee's estate. This intervention is not obligatory but is an option available to Better Blend.
Better Blend's management will not extend beyond 90 days without consent from the franchisee's estate representatives. If the Franchise Agreement remains active, Better Blend will provide an account of the net income generated during their management period.
Better Blend is entitled to collect a temporary management fee, which is calculated as 10% of Adjusted Gross Sales during the period they operate the business, in addition to reimbursement for all expenses incurred. This arrangement ensures the continuity of the Better Blend business while providing compensation to Better Blend for its management services during the transition period.