If I sign a Multi-Unit Development Agreement with Better Blend, what am I obligated to do?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
If you sign a franchise agreement with us, you will develop and operate a healthy and convenient quick service restaurant specializing in nutritionally complete smoothies and smoothie bowls under the trade name Better Blend. If you sign a Multi-Unit Development Agreement (attached as Exhibit C to this disclosure document), you will develop multiple Better Blend outlets, on an agreed-upon schedule. For each future unit franchise, we will require you to sign our thencurrent form of franchise agreement, which may be different from the form of franchise agreement included in this disclosure document.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–9)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if you sign a Multi-Unit Development Agreement, you commit to developing multiple Better Blend outlets according to an agreed-upon schedule. For each individual unit, you will be required to sign Better Blend's then-current form of franchise agreement. The FDD notes that this agreement may differ from the franchise agreement included in the current disclosure document.
This means that as a multi-unit developer, you are not only agreeing to open a certain number of Better Blend locations but also agreeing to be bound by the franchise agreement that is in effect at the time each individual location is opened. This is a fairly standard practice in multi-unit franchising, as franchise agreements are updated periodically to reflect changes in the brand's operations, legal requirements, and market conditions.
Prospective franchisees should carefully review the Multi-Unit Development Agreement (Exhibit C) and understand the development schedule, any associated penalties for failing to meet the schedule, and the potential for changes in the franchise agreement for each unit. It is important to recognize that the terms and conditions under which each Better Blend unit will operate may evolve over the development period.