What is the name of the agreement that includes a guaranty and non-compete agreement for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Issuance Date: May 3, 2024
I received a disclosure document dated May 3, 2024 that included the following Exhibits:
- A. State Administrators and Agents for Service of Process
- B. Franchise Agreement (with Guaranty and Non-Compete Agreement)
- C. Multi-Unit Development Agreement
- D. Rider to Lease Agreement
- E. Form of General Release
- F. Financial Statements
- G. Brand Standards Manual Table of Contents
- H. Current and Former Franchisees
- I. State Addenda to Disclosure Document
- J. State Addenda to Agreements
- K. EFT Authorization Form
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the agreement that includes both a guaranty and a non-compete agreement is called the Franchise Agreement. Exhibit B of the FDD contains the Franchise Agreement, which explicitly includes both a Guaranty and a Non-Compete Agreement.
Prospective franchisees should carefully review Exhibit B to understand the full scope of their obligations under the guaranty and non-compete provisions. The guaranty typically requires the franchisee (and potentially other individuals) to personally guarantee the financial obligations of the franchise. The non-compete agreement restricts the franchisee's ability to engage in similar businesses during and after the franchise term, within a specified geographic area.
Understanding the terms of these agreements is crucial, as they can have significant legal and financial implications. Franchisees should seek legal counsel to fully understand their rights and responsibilities before signing the Franchise Agreement. The FDD includes several exhibits, and it is important to review each one carefully before making a decision.