What are the requirements for a Better Blend franchisee to renew their 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, the term of the franchise agreement is 10 years from the date of signing. Better Blend allows franchisees the option to obtain a successor franchise agreement for up to two additional 5-year terms. Better Blend considers "renewal" to mean that a franchisee signs a successor franchise agreement for an additional five-year term at the end of their current term. The new agreement that a franchisee signs may contain terms and conditions that are materially different from those in the original contract.
To renew the franchise agreement with Better Blend, a franchisee must provide advance notice to Better Blend. The franchisee must be in compliance with all contractual obligations to Better Blend and third parties. Franchisees must renovate their location to meet Better Blend's then-current standards. Franchisees must also sign Better Blend's then-current form of franchise agreement and related documents, including a personal guaranty.
Better Blend also requires that the franchisee has not defaulted more than twice under the franchise agreement and has complied with all requirements of ethics and values. The franchisee must pay a renewal fee and sign a general release, unless prohibited by applicable law. 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.