Does the Principal Executive of a Better Blend franchise have to serve as a day-to-day general manager of the business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee.
BBF is entitled to rely on any communication, decision, or act by the Principal Executive as being the communication, decision, or act of Franchisee.
The Principal Executive must have at least 30% ownership interest in Franchisee.
The Principal Executive does not have to serve as a day-to-day general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business.
If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to BBF's reasonable approval.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Principal Executive is not required to be the day-to-day general manager of the business. However, the Principal Executive must devote substantial time and attention to the Better Blend business.
The Principal Executive is the person designated on the Summary Page of the Franchise Agreement who has primary responsibility for the business and decision-making authority. Better Blend is entitled to rely on any communication, decision, or act by the Principal Executive as being that of the franchisee.
The Principal Executive must maintain at least a 30% ownership interest in the franchise. If the Principal Executive dies, becomes incapacitated, transfers their interest, or is no longer the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Better Blend's approval.