How many days does a Better Blend franchisee have to cure a non-payment default?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| d. Termination by | FA: § 14.1 | If we violate a material provision of the |
| franchisee | ||
| MUDA: § 4 | franchise agreement and fail to cure or to make | |
| substantial progress toward curing the violation | ||
| within 30 days after notice from you. | ||
| If you sign a MUDA, you may terminate it at | ||
| any time. | ||
| e. Termination by | ||
| franchisor without cause | ||
| f. Termination by | We may terminate your agreement for cause, | |
| franchisor with cause | ||
| subject to any applicable notice and cure | ||
| opportunity. | ||
| If you sign a Multi-Unit Development | ||
| Agreement, termination of your MUDA does | ||
| not give us the right to terminate your franchise | ||
| agreement. However, if your franchise | ||
| agreement is terminated, we have the right to | ||
| terminate your MUDA. | ||
| g. “Cause” defined-- | Non-payment by you (10 days to cure); violate | |
| curable defaults |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, a franchisee has 10 days to cure a non-payment default. This means that if a franchisee fails to make a payment to Better Blend as required by the franchise agreement, Better Blend can issue a notice of default. The franchisee then has 10 days from the date of the notice to make the overdue payment and resolve the default.
Failure to cure the non-payment within this 10-day period can result in Better Blend terminating the franchise agreement. Termination would mean the franchisee loses the right to operate the Better Blend business and could face additional penalties or legal action as outlined in the franchise agreement.
It is important for prospective Better Blend franchisees to understand the implications of this cure period. Franchisees should ensure they have sufficient financial resources and systems in place to make all payments on time to avoid the risk of default and potential termination of their franchise agreement. This is a relatively short cure period compared to some other franchises, so franchisees need to be diligent about managing their finances.