Who is responsible for the actions of personnel at a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ancellation.
- (c) Franchisee shall provide Certificates of Insurance evidencing the required coverage to BBF prior to opening and upon annual renewal of the insurance coverage, as well as at any time within 15 days after request from BBF.
- 7.16 Obligations to Third Parties. Franchisee shall pay all vendors and suppliers in a timely manner. Franchisee shall pay all taxes when due. If Franchisee borrows money, it shall comply with the terms of its loan and make all loan payments when due. If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.
- 7.17 Public Relations. Franchisee shall not make any public statements (including giving interviews or issuing press releases) regarding Better Blend, the Business, or any particular incident or occurrence related to the Business, without BBF's prior written approval, which will not be unreasonably withheld.
- 7.18 Association with Causes. Franchisee shall not in the name of the Business (i) donate money, products, or services to any charitable, political, religious, or other organization or cause, or (ii) act in support of any such organization or cause, without BBF's prior written approval, which will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the franchisee is responsible for managing their business and adhering to Better Blend's standards. Specifically, the franchisee is obligated to comply with their location lease, loan terms, and to pay vendors, suppliers, and taxes in a timely manner. This indicates that the franchisee is responsible for the financial and legal obligations of their Better Blend outlet, which would extend to the actions of their personnel.
Better Blend franchisees must also secure and maintain required insurance coverage, providing certificates to Better Blend Franchising, LLC before opening, upon annual renewal, and within 15 days of any request from the franchisor. This requirement suggests that franchisees are expected to manage risks associated with their business operations, including potential liabilities arising from the actions of their employees.
Furthermore, franchisees are restricted from making public statements or associating the business with causes without prior written approval from Better Blend, ensuring brand consistency and control. This level of oversight, combined with the franchisee's responsibility for financial and legal obligations, implies that the franchisee is accountable for the actions and conduct of their personnel within the Better Blend franchise.