Does Better Blend require approval for franchisee transfers?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| l. Franchisor’s approval of | FA: § 15.2 | No transfers without our approval. No transfers without our approval. |
| transfer by franchisee | MUDA: § 7 | |
| n. Franchisor’s right of | If you want to transfer your business (other | |
| first refusal to acquire | ||
| franchisee’s business | than to your co-owner or your spouse, sibling, or child), we have a right of first refusal. | |
| p. Death or disability of | FA: §§ 2.4, 15.4 | If you die or become incapacitated, a new |
| franchisee | ||
| MUDA: none | principal executive acceptable to us must be designated to operate the business, and your executor must transfer the business to an approved new owner within nine months. We have the right to temporarily operate the business. |
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, franchisee transfers require franchisor approval. The FDD states that no transfers are allowed without Better Blend's approval. This requirement applies to both the Franchise Agreement (FA) and the Multi-Unit Development Agreement (MUDA).
This means that if a franchisee wants to sell their Better Blend business, transfer ownership, or transfer the franchise agreement, they must first obtain permission from Better Blend. This provision allows Better Blend to maintain control over who enters their franchise system and ensures that new franchisees meet their standards.
Better Blend also has a right of first refusal to acquire the franchisee's business if the franchisee wants to transfer their business to someone other than a co-owner, spouse, sibling, or child. If the franchisee dies or becomes incapacitated, the executor must transfer the business to an approved new owner within nine months, and Better Blend has the right to temporarily operate the business.