What is the notification timeframe required for a Better Blend franchisee to elect to renew their agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
-terrorism law, regulation, or executive order.
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement for the Location for up to two additional periods of five years each, subject to the following conditions prior to each expiration:
- (i) Franchisee notifies BBF of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with BBF (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee did not (A) receive written notice of default under this Agreement from BBF more than twice during the term, or (B) failed to cure a written notice of default under this Agreement within the cure period (if any) provided in this Agreement;
- (iv) Franchisee and its Owners complied with Section 7.24 of this Agreement at all times during the term;
- (v) Franchisee has made or agrees to make (within a period of time acceptable to BBF) renovations and changes to the Business as BBF requires (including a Remodel, if applicable) to conform to the then-current System Standards;
- (vi) Franchisee and its Owners execute BBF's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that the form of the franchise agreement will be amended to provide that Franchisee will not pay another initial franchise fee and to provide that Franchisee will not receive more renewal or successor terms than originally granted to Franchisee;
- (vii) Franchisee pays a renewal fee equal to the greater of (a) 50% of the then-current franchise fee or (b) $17,500; and
- (viii) Franchisee and each Owner executes a general release (on BBF's then-standard form) of any and all claims against BBF, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee who wishes to renew their franchise agreement must notify Better Blend of their election to renew between 90 and 180 days prior to the end of the current term. The initial term of the agreement is 10 years, and franchisees can enter into a successor agreement for up to two additional periods of five years each.
However, this renewal is subject to several conditions. The franchisee must be in compliance with the existing agreement and all other agreements with Better Blend at the time of election and renewal. They also must not have received more than two written notices of default during the term or failed to cure any default notices. Furthermore, the franchisee must have complied with Section 7.24 of the agreement at all times during the term.
Additional conditions for renewal include making required renovations and changes to the business to meet then-current system standards, executing Better Blend's current standard franchise agreement (which may have materially different terms and fees), paying a renewal fee equal to the greater of 50% of the then-current franchise fee or $17,500, and executing a general release of claims against Better Blend and its affiliates.