What pre-opening site-related obligations does Better Blend have to franchisees?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open your business:
- 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.
- (v) We are not obligated to assist you in conforming the premises of your site to local ordinances and building codes and obtaining any required permits.
This will be your responsibility.
- B. Constructing, remodeling, or decorating the premises.
We will advise you regarding the layout, design, and build-out of your business. (Section 5.2)
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 has limited pre-opening obligations regarding the franchisee's site. Better Blend will review and advise franchisees on potential locations submitted by the franchisee. If a franchisee signs a Multi-Unit Development Agreement, Better Blend will approve the location of future sites and territories, applying their current standards for sites and territories. However, Better Blend is not obligated to assist in locating a site or negotiating the purchase or lease. The franchisee is responsible for finding a potential site and submitting it to Better Blend for approval, along with all required information and documents. Better Blend will issue a Location Acceptance Letter upon accepting a site.
Better Blend considers factors such as general location, neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms when approving sites. The approval or disapproval process takes 30 days after the franchisee submits all required documents and information. If the franchisee and Better Blend cannot agree on a site, the franchisee may default on their obligation to open the franchise by the deadline, potentially leading to termination of the franchise agreement.
Better Blend is not obligated to assist franchisees in conforming the premises to local ordinances and building codes or obtaining required permits; this is the franchisee's responsibility. However, Better Blend will advise franchisees regarding the layout, design, and build-out of their business. In summary, while Better Blend offers some guidance and approval regarding site selection and design, the franchisee bears the primary responsibility for finding, securing, and preparing the site.