factual

When is Better Blend prohibited from requiring a remodel of the location?

Better_Blend Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, BBF may require Franchisee to undertake and complete a Remodel of the Location to BBF's satisfaction.

Franchisee must complete the Remodel in the time frame specified by BBF.

BBF may require Franchisee to submit plans for BBF's reasonable approval prior to commencing a required Remodel, and BBF may require Franchisee to engage a qualified licensed contractor to perform the Remodel.

BBF'sright to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2024 FDD)

According to Better Blend's 2024 Franchise Disclosure Document, there are specific timeframes when Better Blend cannot mandate a remodel of a franchisee's location. Better Blend is prohibited from requiring a remodel in the first two years or the last two years of the franchise term. However, this restriction does not apply if a remodel is required as a condition for renewing the franchise term or when transferring the franchise to a new owner.

Furthermore, Better Blend will not require a remodel more than once every five years. This five-year period is calculated from the date the franchisee completed their previous remodel. This clause protects franchisees from being forced to undertake costly remodels too frequently.

These stipulations provide some financial predictability for franchisees, as they know they won't be required to remodel immediately after opening or shortly before the end of their term, unless it's tied to a renewal or transfer. Franchisees should carefully note the dates of any remodels to ensure they are not asked to remodel again before the five-year period has elapsed.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.