Does Better Blend own the premises and lease it to the franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.2). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises and lease it to you.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site. You must find a potential site and submit your site to us for
- approval, together with all information and documents about the site that we request.
When we accept a site, we will issue a Location Acceptance Letter (in the form of Attachment 2 to the Franchise Agreement).
(iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
(iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1).
If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement.
Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–27)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend generally does not own the premises and lease it to the franchisee. The franchisee is responsible for finding a potential site and submitting it to Better Blend for approval, along with all necessary information and documents.
Better Blend will review and advise the franchisee regarding potential locations that are submitted. If a Multi-Unit Development Agreement is signed, Better Blend will approve the location of future sites and territories. The factors Better Blend considers in approving sites include general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
The time limit for Better Blend to approve or disapprove a proposed site is 30 days after the franchisee submits all required documents and information. If Better Blend and the franchisee cannot agree on a site, the franchisee will be unable to comply with their obligation to develop and open the franchise by the deadline stated in the franchise agreement, potentially leading to default and termination of the agreement.