Can Better Blend refuse a transfer if the proposed transferee is a competitor?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
anchisee's taxes and other liabilities are paid. BBF may assign this purchase option to another party.
ARTICLE 15. TRANSFERS
- 15.1 By BBF. BBF may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and BBF may undergo a change in ownership and/or control, without the consent of Franchisee.
- 15.2 By Franchisee. Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that BBF entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend can refuse a transfer if the proposed transferee is a competitor.
Specifically, before a franchisee can transfer their Better Blend franchise, they must provide Better Blend with at least 60 days' notice and obtain Better Blend's consent. Better Blend may impose conditions when granting consent for a transfer.
One of the conditions Better Blend may impose is that the proposed transferee is not a competitor. This means that if the individual or entity seeking to acquire the franchise is deemed a competitor by Better Blend, the transfer can be denied. This provision aims to protect Better Blend's brand and competitive position by preventing competitors from gaining access to their operational methods and market strategies through acquiring an existing franchise.