Does Better Blend have the right to establish or license other Better Blend businesses outside the franchisee's territory?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
lend business at the Location for the entire term of this Agreement. Franchisee shall exert its best efforts to promote and enhance the Business.
- 2.2 Protected Territory. BBF shall not establish, nor license the establishment of, another business within the Territory (other than a Limited Access Venue) selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend business. This prohibition does not apply to any Better Blend business operating or under construction when the Territory is determined. BBF and its affiliates retain the right to do any of the following (all without any compensation to Franchisee):
- (i) establish and license others to establish and operate Better Blend businesses outside the Territory, notwithstanding their proximity to the Territory or their potential impact on the Business;
- (ii) establish and license others to establish and operate Better Blend businesses in Limited Access Venues inside the Territory;
- (iii) operate and license others to operate businesses anywhere, including within the Territory, that sell the same or similar goods or services as a Better Blend business under trademarks or service marks that are not the same as or similar to the Marks;
- (iv) sell and license others to sell any products and services in the Territory under any trademarks or service marks (including the Marks) through channels of distribution (including the internet) other than Better Blend;
- (iv) acquire or be acquired by (under any form of business transaction) a Competitor that has (or may in the future have) outlets in the Territory which compete with the Business under trademarks or service marks other than the Marks;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend retains the right to establish or license others to establish and operate Better Blend businesses outside a franchisee's territory. This is permitted regardless of the proximity to the franchisee's territory or the potential impact on the franchisee's business. This means that while a franchisee is granted a protected territory, Better Blend can still expand its brand presence in other areas, even if those areas are close to the franchisee's location.
Better Blend also retains the right to establish and license others to operate Better Blend businesses in Limited Access Venues inside the franchisee's territory. Additionally, Better Blend can operate and license others to operate businesses anywhere, including within the franchisee's territory, that sell similar goods or services under different trademarks or service marks. Better Blend can also sell and license others to sell any products and services in the territory under any trademarks or service marks through other channels of distribution, including the internet.
Furthermore, Better Blend has the right to acquire or be acquired by a Competitor that has outlets in the franchisee's territory which compete with the Business under trademarks or service marks other than the Marks. Finally, Better Blend can engage in any action not specifically precluded by the express terms of the Franchise Agreement. This wide range of rights retained by Better Blend means that a franchisee's territory is protected only to a limited extent, and the franchisee should be aware of potential competition from other Better Blend ventures or related activities.