In New York, has Better Blend been convicted of a felony?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10 year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the New York Addendum modifies Item 3 regarding legal actions. Specifically, it states that except as provided elsewhere, neither Better Blend, its predecessors, individuals identified in Item 2, nor affiliates offering franchises under Better Blend's trademark have faced specific legal issues. These include pending administrative, criminal, or civil actions alleging a felony, violations of franchise, antitrust, or securities laws, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable allegations.
Furthermore, the addendum confirms that these parties have not been convicted of a felony or pleaded nolo contendere to a felony charge. Nor, within the past 10 years, have they been convicted of or pleaded nolo contendere to a misdemeanor charge, or been subject to a civil action alleging violations of franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
Finally, the New York Addendum confirms that none of these parties are subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, or trade regulation law as of the FDD's issuance. This information is crucial for prospective franchisees in New York to assess the legal and ethical standing of Better Blend and its associated parties.