Does the prohibition against Better Blend Franchising (BBF) establishing another business within the Territory apply to Limited Access Venues?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.2 Protected Territory. BBF shall not establish, nor license the establishment of, another business within the Territory (other than a Limited Access Venue) selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend business. This prohibition does not apply to any Better Blend business operating or under construction when the Territory is determined. BBF and its affiliates retain the right to do any of the following (all without any compensation to Franchisee):
- (i) establish and license others to establish and operate Better Blend businesses outside the Territory, notwithstanding their proximity to the Territory or their potential impact on the Business;
- (ii) establish and license others to establish and operate Better Blend businesses in Limited Access Venues inside the Territory;
- (iii) operate and license others to operate businesses anywhere, including within the Territory, that sell the same or similar goods or services as a Better Blend business under trademarks or service marks that are not the same as or similar to the Marks;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the prohibition against Better Blend Franchising (BBF) establishing or licensing another business within a franchisee's territory does not apply to Limited Access Venues. This means that BBF retains the right to establish or license Better Blend businesses in Limited Access Venues within a franchisee's protected territory without compensating the franchisee.
For a prospective franchisee, this is a crucial point to consider. While a franchisee is granted a protected territory, this protection has an exception for Limited Access Venues. These venues could include locations like airports, universities, or stadiums. Better Blend can operate or license additional locations within these venues, even if they fall inside a franchisee's territory. This could potentially impact the franchisee's revenue, depending on the proximity and customer base overlap between the franchised location and the Limited Access Venues.
This exception is relatively common in franchising, particularly for brands that can operate successfully in non-traditional locations. It allows Better Blend to pursue opportunities in venues that might not be suitable for a traditional franchise model. A prospective franchisee should carefully evaluate the potential impact of existing or future Limited Access Venues in their territory and consider this factor when assessing the overall opportunity and potential revenue.
Therefore, it is important for a potential Better Blend franchisee to understand the definition of "Limited Access Venues" as defined in the franchise agreement and to assess the likelihood and potential impact of such venues being established within their territory. This understanding will help in making an informed decision about investing in a Better Blend franchise.