What does 'renewal' mean in the context of a Better Blend franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
the agreements attached to this disclosure document.**
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| a. Length of the franchise term | Franchise | The term of the franchise agreement is 10 years from date of signing. The MUDA will expire on the date that your last franchise is scheduled to open. |
| Agreement (FA): § | ||
| 3.1 | ||
| Multi-Unit | ||
| Development | ||
| Agreement | ||
| (MUDA): §1(a) | ||
| b. Renewal or extension | FA: § 3.2 | You may obtain a successor franchise |
| of the term | ||
| MUDA: none | agreement for up to two additional 5-year | |
| terms. | ||
| c. Requirements for | For our franchise system, “renewal” means that | |
| franchisee to renew or | ||
| extend | ||
| at the end of your term, you sign our successor | ||
| franchise agreement for an additional five-year | ||
| term. You may be asked to sign a contract with | ||
| materially different terms and conditions than | ||
| your original contract. | ||
| To renew, you must give advance notice to us; | ||
| be in compliance with all contractual | ||
| obligations to us and third parties; renovate to | ||
| our then-current standards; sign then-current | ||
| form of franchise agreement and related | ||
| documents (including personal guaranty); have | ||
| not defaulted more than twice under the | ||
| franchise agreement; complied with all | ||
| requirements of ethics and values; pay renewal | ||
| fee; sign general release (unless prohibited by | ||
| applicable law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, renewal means that a franchisee can obtain a successor franchise agreement for up to two additional 5-year terms. The initial franchise agreement is for a term of 10 years from the date of signing.
To renew the franchise agreement, Better Blend requires advance notice from the franchisee. The franchisee must be in compliance with all contractual obligations to Better Blend and third parties. The franchisee will also need to renovate to Better Blend's then-current standards, sign the then-current form of franchise agreement and related documents (including a personal guaranty), and have complied with all requirements of ethics and values. The franchisee must not have defaulted more than twice under the franchise agreement, pay a renewal fee, and sign a general release (unless prohibited by applicable law).
The renewal agreement that a Better Blend franchisee signs may contain materially different terms and conditions than the original contract. If a franchisee continues to operate their Better Blend franchise after the expiration of the term without a renewal agreement, Better Blend may either terminate the operation at any time or deem the franchisee to have renewed the agreement for a five-year term and collect the renewal fee.