If Better Blend registers a domain name for a franchisee, who is responsible for the renewal costs?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (iii) immediately take all action required (a) to cancel all assumed name or equivalent registrations relating to Franchisee's use of the Marks; and (b) to cancel or transfer to BBF or its designee all telephone numbers, post office boxes, directory listings, and Digital Marketing accounts used by Franchisee in connection with the Business or the Marks, including, without limitation, by providing login and password details
and promptly signing all directions and authorizations necessary or appropriate to accomplish the foregoing. Franchisee hereby irrevocably appoints BBF, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing. The telephone company, the postal service, registrars, Internet service providers and each listing agency may accept such direction by BBF pursuant to this Agreement as conclusive evidence of BBF's exclusive rights in such accounts and its authority to direct their transfer; and
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
Based on the 2024 Better Blend Franchise Disclosure Document, franchisees are responsible for the costs associated with digital marketing accounts, including domain names, used in connection with their Better Blend business. Specifically, upon termination or expiration of the franchise agreement, the franchisee must transfer to Better Blend all digital marketing accounts used for the business. This transfer includes providing login details and signing necessary authorizations. The franchisor can direct the transfer of these accounts, which includes domain names, and such direction is considered conclusive evidence of Better Blend's rights to those accounts.
This means that while Better Blend may initially register a domain name for a franchisee, the franchisee ultimately bears the responsibility for any renewal costs associated with it during the term of the franchise agreement. This is further supported by the general obligation of the franchisee to manage and pay for various aspects of their business, including relationships with vendors and suppliers.
For a prospective Better Blend franchisee, this highlights the importance of budgeting for ongoing digital marketing expenses, including domain name renewals. It also underscores the need to maintain accurate records of all digital assets and accounts associated with the franchise, as these must be transferred back to Better Blend upon termination or expiration of the agreement. Franchisees should clarify with Better Blend the specific procedures for domain name registration and renewal to ensure compliance with the franchise agreement.