Will the renewal franchise agreement for Better Blend franchisees be amended to ensure that the franchisee will not receive more renewal or successor terms than originally granted?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
-terrorism law, regulation, or executive order.
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement for the Location for up to two additional periods of five years each, subject to the following conditions prior to each expiration:
- (i) Franchisee notifies BBF of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with BBF (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee did not (A) receive written notice of default under this Agreement from BBF more than twice during the term, or (B) failed to cure a written notice of default under this Agreement within the cure period (if any) provided in this Agreement;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the franchise agreement will be amended upon renewal to ensure that franchisees do not receive more renewal or successor terms than they were originally granted.
Specifically, Better Blend's franchise agreement has an initial term of 10 years. Franchisees have the option to enter into a successor agreement for up to two additional periods of five years each, provided they meet certain conditions. These conditions include notifying Better Blend of their election to renew within a specified timeframe, compliance with all agreements, and adherence to Better Blend's standards and requirements.
To renew, franchisees must execute Better Blend's then-current standard form of franchise agreement and related documents, which may differ materially from the original agreement. However, this new agreement will be amended to ensure the franchisee does not pay another initial franchise fee and will not receive more renewal or successor terms than initially granted. Franchisees must also pay a renewal fee equal to the greater of 50% of the then-current franchise fee or $17,500 and execute a general release of claims against Better Blend.