When does the Multi-Unit Development Agreement (MUDA) expire for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
the agreements attached to this disclosure 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. |
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 Multi-Unit Development Agreement (MUDA) will expire on the date that the last franchise is scheduled to open. This is distinct from the franchise agreement itself, which has a term of 10 years from the date of signing.
For a prospective Better Blend franchisee, this means that the MUDA's term is tied to the development schedule agreed upon. If a franchisee plans to open multiple locations, the MUDA remains in effect until the final location is opened, regardless of whether the initial 10-year franchise term has ended. This encourages franchisees to adhere to the agreed-upon development timeline.
It's important to note that the expiration of the MUDA does not automatically terminate the individual franchise agreements for the Better Blend locations already opened. Those agreements continue under their own 10-year terms and are subject to renewal options as outlined in the franchise agreement. Franchisees should carefully consider their development schedule and ensure they can meet the obligations outlined in the MUDA to avoid any potential issues.
The interplay between the franchise agreement and the MUDA is a critical aspect for multi-unit franchisees to understand. While the franchise agreement sets the terms for each individual Better Blend location, the MUDA governs the overall development plan. Franchisees should seek clarification from Better Blend regarding the specific terms and conditions of both agreements to ensure a clear understanding of their rights and obligations.