Does the Better Blend Non-Compliance Fee replace or supplement other rights and remedies available to BBF?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
mployee to BBF's training program after opening, BBF may charge its then-current training fee. As of the date of this Agreement, the training fee is $250 per person per day.
- 4.6 Non-Compliance Fee. BBF may charge Franchisee $500 for each instance of noncompliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to BBF) which Franchisee fails to cure after 30 days' notice. Thereafter, BBF may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of BBF's internal cost of personnel time attributable to addressing the noncompliance, and it is not a penalty or estimate of all d
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the non-compliance fee is in addition to all of Better Blend's other rights and remedies. Better Blend may charge a franchisee $500 for each instance of noncompliance with the System Standards or the Franchise Agreement (other than non-payment of fees owed to Better Blend) if the franchisee fails to correct the issue after 30 days' notice. After this initial fee, Better Blend may charge the franchisee $250 per week until the non-compliance stops.
This fee is considered a reasonable estimate of Better Blend's internal personnel costs for addressing the noncompliance, and it is not considered a penalty or an estimate of all potential damages from the franchisee's breach. This means that Better Blend retains the right to pursue other legal or contractual remedies in addition to collecting the non-compliance fee.
For a prospective Better Blend franchisee, this means that failing to adhere to System Standards can result in both the specified non-compliance fees and potential further action from the franchisor. It is important to understand the System Standards outlined in the Franchise Agreement to avoid these fees and potential additional penalties.