Does Better Blend have any liability to the franchisee with respect to the location of the business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Agreement, (iii) any direct or indirect ownership interest in the Business, or (iv) control of the Business.
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. BBF grants to Franchisee the right to operate a Better Blend business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Better Blend business at the Location for the entire term of this Agreement. Franchisee shall exert its best efforts to promote and enhance the Business.
- 2.2 Protected Territory. BBF shall not establish, nor license the establishment of, another business within the Territory (other than a Limited Access Venue) selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend business. This prohibition does not apply to any Better Blend business operating or under construction when the Territory is determined. BBF and its affiliates retain the right to do any of the following (all without any compensation to Franchisee):
- (i) establish and license others to establish and operate Better Blend businesses outside the Territory, notwithstanding their proximity to the Territory or their potential impact on the Business;
- (ii) establish and license others to establish and operate Better Blend businesses in Limited Access Venues inside the Territory;
- (iii) operate and license others to operate businesses anywhere, including within the Territory, that sell the same or similar goods or services as a Better Blend business under trademarks or service marks that are not the same as or similar to the Marks;
- (iv) sell and license others to sell any products and services in the Territory under any trademarks or service marks (including the Marks) through channels of distribution (including the internet) other than Better Blend;
- (iv) acquire or be acquired by (under any form of business transaction) a Competitor that has (or may in the future have) outlets in the Territory which compete with the Business under trademarks or service marks other than the Marks; and
- (v) engage in any action not specifically precluded by the express terms of this Agreement.
- 2.3 Franchisee Control. Franchisee represents that Attachment 1 (i) identifies each owner, officer and director of Franchisee, and (ii) describes the nature and extent of each owner's interest in Franchisee. If any information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify BBF within 10 days.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend grants the franchisee the right to operate a Better Blend business solely at the agreed-upon location. The Franchise Agreement states that if no location is specified when the agreement is signed, the parties will determine the location later, and the franchisee must operate the business at that location for the entire term of the agreement.
Better Blend also provides the franchisee with a protected territory, within which Better Blend will not establish or license another business selling similar goods or services under the same trademarks. However, this protection does not apply to existing Better Blend businesses or those under construction when the territory is determined. Better Blend retains the right to establish or license businesses outside the territory, in limited access venues within the territory, or businesses selling similar goods under different trademarks, without compensating the franchisee.
Better Blend's reasonable business judgment will guide its decisions, even if other alternatives exist, as long as the decision benefits the Better Blend system or brand. This includes enhancing the value of the trademarks, improving customer service, product quality, uniformity, modernization, and the competitive position of Better Blend outlets. The franchisee is responsible for complying with their lease for the location, including making all rent payments when due, and must operate the Better Blend business exclusively at the specified location.