How long does a Better Blend franchisee have to cure noncompliance before a Non-Compliance Fee is charged?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
mployee to BBF's training program after opening, BBF may charge its then-current training fee. As of the date of this Agreement, the training fee is $250 per person per day.
- 4.6 Non-Compliance Fee. BBF may charge Franchisee $500 for each instance of noncompliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to BBF) which Franchisee fails to cure after 30 days' notice. Thereafter, BBF may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of BBF's internal cost of personnel time attributable to addressing the noncompliance, and it is not a penalty or estimate of all d
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee has 30 days to cure noncompliance with System Standards or the Franchise Agreement (excluding non-payment of fees) after receiving notice. If the franchisee fails to correct the issue within this 30-day period, Better Blend may charge a Non-Compliance Fee of $500 for each instance of noncompliance.
After the initial 30-day cure period and the imposition of the $500 fee, Better Blend may continue to charge the franchisee $250 per week until the non-compliance is resolved. This weekly fee is designed to cover Better Blend's internal costs related to addressing the ongoing noncompliance and is in addition to any other legal remedies Better Blend may pursue.
This policy incentivizes Better Blend franchisees to promptly address any issues of noncompliance to avoid incurring additional fees. It is important to note that this non-compliance fee does not apply to the non-payment of fees owed to Better Blend, which likely has its own set of penalties and procedures as outlined elsewhere in the Franchise Agreement.