What is the name of the agreement required to establish additional Better Blend franchised outlets?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Better Blend business, (3) you must be in compliance with all brand requirements at your open Better Blend business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. For each future site, you must sign our then-current form of Franchise Agreement, which may be materially different than the original Franchise Agreement that you signed. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee needs to sign a Multi-Unit Development Agreement (MUDA) to establish additional franchised outlets. This agreement, included as Exhibit C in the FDD, outlines the terms and conditions under which a franchisee can develop multiple Better Blend locations.
The MUDA grants the franchisee the right to establish a mutually agreed-upon number of additional outlets based on a mutually agreed-upon schedule. However, this right is contingent upon several factors. The franchisee must adhere to the development schedule, possess the financial and organizational capacity to manage each new Better Blend business, maintain compliance with all brand standards at existing locations, and avoid defaulting on any agreements with Better Blend.
Better Blend retains approval rights over the location of future sites, ensuring they meet the company's standards. For each new location, the franchisee must sign Better Blend's current Franchise Agreement, which may differ materially from the original agreement. While the franchisee isn't obligated to develop additional outlets under the MUDA and can terminate it without penalty, Better Blend reserves the right to terminate the franchisee's development rights if the development schedule isn't met. If a MUDA is signed, Better Blend grants an exclusive development area until the final Better Blend location is opened.