What is the length of the initial franchise term for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
the agreements attached to this disclosure document.**
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| a. Length of the franchise term | Franchise | The term of the franchise agreement is 10 years from date of signing. The MUDA will expire on the date that your last franchise is scheduled to open. |
| Agreement (FA): § | ||
| 3.1 | ||
| Multi-Unit | ||
| Development | ||
| Agreement | ||
| (MUDA): §1(a) | ||
| b. Renewal or extension | FA: § 3.2 | You may obtain a successor franchise |
| of the term | ||
| MUDA: none | agreement for up to two additional 5-year | |
| terms. | ||
| c. Requirements for | For our franchise system, “renewal” means that | |
| franchisee to renew or | ||
| extend | ||
| at the end of your term, you sign our successor | ||
| franchise agreement for an additional five-year | ||
| term. You may be asked to sign a contract with | ||
| materially different terms and conditions than | ||
| your original contract. | ||
| To renew, you must give advance notice to us; | ||
| be in compliance with all contractual | ||
| obligations to us and third parties; renovate to | ||
| our then-current standards; sign then-current | ||
| form of franchise agreement and related | ||
| documents (including personal guaranty); have | ||
| not defaulted more than twice under the | ||
| franchise agreement; complied with all | ||
| requirements of ethics and values; pay renewal | ||
| fee; sign general release (unless prohibited by | ||
| applicable law). | ||
| If you continue operating your franchise after | ||
| the expiration of the term without a renewal | ||
| agreement, then we may either terminate your | ||
| operation at any time or deem you to have | ||
| renewed your agreement for a five-year term | ||
| and collect the renewal fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the initial term of the franchise agreement is 10 years from the date of signing. If a franchisee enters into a Multi-Unit Development Agreement (MUDA), that agreement will expire when the last franchise is scheduled to open.
Better Blend offers the option to renew the franchise agreement for up to two additional terms of 5 years each. To renew, a franchisee must provide advance notice, be compliant with all obligations, renovate to current standards, sign the current franchise agreement, avoid more than two defaults, meet ethics requirements, pay a renewal fee, and sign a general release.
If a franchisee continues to operate after the initial term without a renewal agreement, Better Blend can either terminate the operation or deem the agreement renewed for a five-year term and collect the renewal fee. This clause highlights the importance of franchisees adhering to the renewal terms outlined in the franchise agreement to avoid potential termination or unexpected fees.