If requested by Better Blend, what must a franchisee do with the proposed lease for the Location?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall submit its proposed Location to BBF for acceptance, with all related information and documents BBF may request. If BBF does not accept the proposed Location in writing within 30 days, then it is deemed rejected. When BBF accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. BBF shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. BBF's advice regarding or acceptance of a proposed Location is not a representation or warranty that the Business will be successful, or that the Business is permitted to be operated at the Location under applicable laws or zoning ordinances, and BBF has no liability to Franchisee with respect to the location of the Business.
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by BBF, Franchisee must submit the proposed lease to BBF for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by BBF.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if Better Blend requests it, a franchisee must submit the proposed lease for their location to Better Blend for written approval. The lease term, including any renewal options, must be no less than the term of the Franchise Agreement. Additionally, the franchisee must use commercially reasonable efforts to get the landlord to sign a rider to the lease in the form required by Better Blend.
This requirement allows Better Blend to ensure that the lease terms are favorable and protect their interests. By reviewing the lease, Better Blend can verify that the franchisee has secured appropriate terms regarding rent, lease duration, and renewal options, which are crucial for the long-term viability of the Better Blend business. The rider to the lease ensures that the landlord acknowledges Better Blend's rights and interests in the location, which can be important in case of a transfer or termination of the franchise agreement.
For a prospective franchisee, this means they need to be prepared to share their lease agreement with Better Blend and potentially negotiate terms with the landlord to meet Better Blend's requirements. This could add time and complexity to the site selection and lease negotiation process. However, it also provides an opportunity for the franchisee to benefit from Better Blend's experience and expertise in evaluating lease terms and protecting their business interests.
Better Blend's acceptance of a proposed location does not represent or warrant that the business will be successful or that the business is permitted to be operated at the location under applicable laws or zoning ordinances, and Better Blend has no liability to the franchisee with respect to the location of the business.