If a Better Blend franchisee dies, does Better Blend have the right to temporarily manage the business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our expenses | We may take any action we deem | ||
| appropriate to resolve a customer | |||
| complaint about your business. If we | |||
| respond to a customer complaint, we may | |||
| require you to reimburse us for our | |||
| expenses. | |||
| Payable only if (1) we audit you because | |||
| you have failed to submit required reports | |||
| or other non-compliance, or (2) the audit | |||
| concludes that you under-reported | |||
| adjusted gross sales b | |||
| any 4-week period. | |||
| Payable only if we conduct an inspection | |||
| of your business because of a | |||
| governmental report, customer complaint | |||
| or other customer feedback, or your | |||
| default or non-compliance with any | |||
| system specification. | |||
| We may cure your non-compliance on | |||
| your behalf (for example, if you do not | |||
| have required insurance, we may purchase | |||
| insurance for you), and you will owe our | |||
| costs plus a 10% administrative fee. | |||
| 50% of the then- | Payable if you enter into a successor | ||
| current franchise fee, | franchise agreement at the end of your | ||
| but not less than | agreement term. | ||
| $17,500 | |||
| $17,500 plus any | |||
| broker fees and other | |||
| out-of-pocket fees | |||
| we incur | |||
| 10% of adjusted | We have the right to temporarily manage | ||
| gross sales plus our | your business and charge this fee if (i) you | ||
| expenses | die or become incapacitated, (ii) we | ||
| exercise our right to purchase your | |||
| business after your franchise agreement | |||
| end, or (iii) you operate the business in a | |||
| dangerous manner. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend does have the right to temporarily manage a franchise under specific circumstances, including the death or incapacitation of the franchisee. If Better Blend exercises this right, the franchisee (or their estate) will be responsible for paying Better Blend 10% of adjusted gross sales, plus any expenses Better Blend incurs while managing the business.
This provision ensures that the Better Blend business can continue operating smoothly even in unforeseen circumstances. It protects the brand's reputation and ensures customers continue to receive consistent service. However, it also means that the franchisee's heirs or estate will be responsible for covering the costs associated with Better Blend's temporary management, which could impact the financial benefits they receive from the franchise.
It is important for prospective Better Blend franchisees to understand the conditions under which Better Blend can take over management of the business and the associated costs. This knowledge can help them plan for contingencies and make informed decisions about their investment. Franchisees should discuss this provision with legal and financial advisors to fully understand its implications.