What is the 'Holdover Notice' in the Better Blend franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.11 Holdover. If Franchisee continues operating the Business after the expiration of the term without a renewal agreement or successor franchise agreement executed by the parties in accordance with Section 3.2, then at any time (regardless of any course of dealing by the parties), BBF may by giving written notice to Franchisee (the "Holdover Notice") either (i) require Franchisee to cease operating the Business and comply with all post-closing obligations effective immediately upon giving notice or effective on such other date as
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the 'Holdover Notice' comes into play if a franchisee continues to operate their Better Blend business after the franchise term expires, without having signed a renewal agreement or a successor franchise agreement.
In this situation, Better Blend retains the right to issue a written notice to the franchisee, termed the 'Holdover Notice'. This notice allows Better Blend to demand that the franchisee immediately cease operating the Better Blend business. The franchisee must then comply with all post-closing obligations, either immediately upon receiving the notice or on another date specified by Better Blend.
This clause protects Better Blend by ensuring that a franchisee cannot continue using the Better Blend system and brand without proper authorization after the franchise agreement's term has ended. It gives Better Blend the power to enforce the termination and ensure a smooth transition, safeguarding their brand standards and business interests.