Can Better Blend make recommended procedures mandatory for franchisees?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
restaurant specializing in nutritionally complete smoothies and smoothie bowls under the trade name "Better Blend".
- B. The System includes (1) methods, procedures, and standards for developing and operating a Better Blend business, (2) plans, specifications, equipment, signage, and trade dress for Better Blend businesses, (3) particular menu items, beverages, products, and services, (4) the Marks, (5) training programs, (6) business knowledge, (7) marketing plans and concepts, and (8) other mandatory or optional elements as determined by BBF from time to time.
- C. The parties desire that BBF license the Marks and the System to Franchisee for Franchisee to develop and operate a Better Blend business on the terms and conditions of this Agreement.
ARTICLE 1. DEFINITIONS
- "Action" means any action, suit, proceeding, claim, demand, governmental investigation, governmental inquiry, or judgment or appeal thereof, whether formal or informal.
- "Adjusted Gross Sales" means the total dollar amount of all sales generated through the Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit, and any proceeds of business interruption insurance. Adjusted Gross Sales does not include (i) coupons, discounts, and bona fide refunds to customers, (ii) sales taxes collected by Franchisee, or (iii) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Adjusted Gross Sales).
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend has the authority to implement both mandatory and optional elements within its System for operating a Better Blend business. The System encompasses various components, including methods, procedures, and standards for business operation, along with marketing plans and concepts. This indicates that Better Blend retains the discretion to modify procedures and standards, potentially making previously optional elements mandatory for franchisees.
Better Blend's decisions are considered valid as long as they exercise reasonable business judgment, especially when the decisions are intended to benefit the System or the Better Blend brand. Examples of actions that benefit the brand include improving uniformity and enhancing customer service. This latitude allows Better Blend to adapt its operational requirements to maintain brand consistency and competitiveness.
As a franchisee, it is crucial to stay informed about any changes to the System's procedures and standards. While the Franchise Agreement grants Better Blend the flexibility to evolve its operational guidelines, franchisees should expect clear communication regarding any new mandatory requirements. Franchisees should also understand that Better Blend's decisions are geared towards the overall benefit of the brand, even if they also serve Better Blend's interests.