Who owns the Innovations developed by a Better Blend franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
13.1 Confidential Information. With respect to all Confidential Information, Franchisee shall (a) adhere to all procedures prescribed by BBF for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business, (c) not use any such information in any other business or in any manner not specifically authorized in
writing by BBF, (d) exercise the highest degree of diligence and effort to maintain the confidentiality of all such information during and after the term of this Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or use of Confidential Information. Franchisee acknowledges that all Confidential Information is owned by BBF (except for Confidential Information which BBF licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, Better Blend Franchising, LLC retains ownership of all confidential information. This includes any innovations or improvements a franchisee might develop related to the Better Blend system.
Specifically, the Franchise Agreement states that all Confidential Information is owned by BBF (Better Blend Franchising, LLC), except for Confidential Information which BBF licenses from another person or entity. The agreement defines Confidential Information broadly to include all non-public information of or about the System, BBF, and any Better Blend business, including the Manual, all methods for developing and operating the Business, and all non-public plans, data, financial information, recipes, processes, vendor pricing, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, customer data, information and know-how.
This means that any new recipes, operational improvements, or marketing strategies a franchisee creates within their Better Blend business become the property of the franchisor. The franchisee can only use this information within the scope of their franchise agreement and must maintain its confidentiality. This clause survives the termination or expiration of the Franchise Agreement indefinitely.
For a prospective franchisee, this highlights the importance of understanding the intellectual property ownership terms. While franchisees can contribute to the system, they do not retain ownership of their innovations. This is a common practice in franchising, where the franchisor aims to maintain consistency and control over the brand and system-wide.