Can Better Blend require a franchisee to pay cash on delivery if the franchisee is in default?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4 Right to Discontinue Supplies Upon Default. While Franchisee is in default or breach of this Agreement, BBF may (i) require that Franchisee pay cash on delivery for products or services supplied by BBF, (ii) stop selling or providing any products and services to Franchisee, and/or (iii) request any third-party vendors to not sell or provide products or services to Franchisee.
No such action by BBF shall be a breach or constructive termination of this Agreement, change in competitive circumstances, or similarly characterized, and Franchisee shall not be relieved of any obligations under this Agreement because of any such action.
Such rights of BBF are in addition to any other right or remedy available to BBF.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend has the right to require a franchisee to pay cash on delivery if the franchisee is in default or breach of the Franchise Agreement. Better Blend can also stop selling or providing any products and services to the franchisee and/or request any third-party vendors to not sell or provide products or services to the franchisee.
Better Blend states that these actions do not constitute a breach or constructive termination of the agreement, a change in competitive circumstances, or similar. The franchisee remains obligated under the agreement despite these actions taken by Better Blend.
These rights are in addition to any other right or remedy available to Better Blend, meaning Better Blend can pursue other legal or contractual remedies concurrently. This is a fairly standard clause in franchise agreements, allowing the franchisor to protect its interests when a franchisee is not meeting their obligations.