How long is the franchise term for Better Blend, as stated in the Franchise Agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD 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 franchise agreement has an initial term of 10 years from the date of signing. For franchisees who also sign a Multi-Unit Development Agreement (MUDA), the MUDA will expire when the last franchise is scheduled to open.
Better Blend offers the possibility of renewal. Franchisees can obtain a successor franchise agreement for up to two additional 5-year terms. However, Better Blend may require franchisees to sign a contract with materially different terms and conditions than the original agreement.
To renew the franchise agreement, Better Blend requires franchisees to provide advance notice, be compliant with all contractual obligations to Better Blend and third parties, renovate to then-current standards, sign the then-current form of franchise agreement and related documents (including personal guaranty), have not defaulted more than twice under the franchise agreement, comply with all requirements of ethics and values, pay a renewal fee, and sign a general release (unless prohibited by applicable law). If a franchisee continues to operate after the expiration of the 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.