What kind of damages are expressly authorized by the Better Blend Franchise Agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
tion of the Business, will inure to the exclusive benefit of BBF.
- 12.2 Change of Marks. BBF may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after BBF makes any such change (not to exceed 90 days), Franchisee must comply with the change, at Franchisee's expense.
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) BBF shall defend Franchisee (at BBF's expense) against any Action by a third party alleging infringement by Franchisee's use of a Mark, and (ii) BBF shall indemnify Franchisee for expenses and damages if the Acti
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the Franchise Agreement outlines specific instances where damages may be awarded. If a third party brings an action against a franchisee alleging infringement through the use of a Better Blend mark, Better Blend will defend the franchisee at its own expense. Should the action be resolved unfavorably to the franchisee, Better Blend will indemnify the franchisee for expenses and damages.
In North Dakota, the North Dakota Rider to the Franchise Agreement specifies that franchisees and any guarantors are not required to consent to liquidated damages or termination penalties. Additionally, the parties do not waive exemplary and punitive damages. This means that while the agreement may outline potential damages, certain types of damages are not required or are specifically not waived in North Dakota.
These provisions regarding damages are important for prospective franchisees to understand, as they clarify the circumstances under which Better Blend will cover expenses and damages related to infringement claims. Franchisees should be aware of the conditions and limitations, particularly regarding actions by third parties and the specific stipulations within the North Dakota Rider.