What is the name of the California law under which Better Blend franchises have been registered?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
CALIFORNIA ADDENDUM TO DISCLOSURE DOCUMENT
California Corporations Code, Section 31125 requires the franchisor to give the franchisee a disclosure document, approved by the Department of Financial Protection and Innovation, prior to a solicitation of a proposed material modification of an existing franchise.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT 14 DAYS PRIOR TO THE EXECUTION OF AGREEMENT.
OUR WEBSITE (www.betterblend.com) HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA.
REGISTRATION OF THIS FRANCHISE OFFERING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF FINANCIAL PROTECTION AND INNOVATION NOR A FINDING BY THE COMMISSIONER OF THE DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
ALL THE OWNERS OF THE FRANCHISE WILL BE REQUIRED TO EXECUTE PERSONAL GUARANTEES. THIS REQUIREMENT PLACES THE MARITAL ASSETS OF THE SPOUSES DOMICILED IN COMMUNITY PROPERTY STATES – ARIZONA, CALIFORNIA, IDAHO, LOUISIANA, NEVADA, NEW MEXICO, TEXAS, WASHINGTON AND WISCONSIN AT RISK IF YOUR FRANCHISE FAILS.
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the franchises have been registered under the Franchise Investment Law of the State of California. The disclosure document also states that California Corporations Code, Section 31125 requires Better Blend to provide a disclosure document approved by the Department of Financial Protection and Innovation before any solicitation of a proposed material modification of an existing franchise.
Additionally, the California Addendum to the disclosure document specifies that a copy of all proposed agreements relating to the sale of the franchise must be delivered along with the disclosure document 14 days prior to the execution of the agreement. The disclosure document clarifies that the California Department of Financial Protection and Innovation has not reviewed or approved Better Blend's website, and any complaints about the website's content can be directed to the Department.
It is important to note that the registration of the Better Blend franchise offering does not constitute approval, recommendation, or endorsement by the Commissioner of Financial Protection and Innovation. Nor does it represent a finding that the information provided in the disclosure document is true, complete, and not misleading. Furthermore, all owners of the franchise will be required to execute personal guarantees, which puts the marital assets of spouses domiciled in community property states, including California, at risk if the franchise fails.
Prospective franchisees in California should carefully review the disclosure document and all related agreements, ensuring they understand the implications of the Franchise Investment Law and the personal guarantee requirement. They should also independently verify any information presented on Better Blend's website with the California Department of Financial Protection and Innovation.