What right does Better Blend Franchising (BBF) grant to the franchisee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. BBF grants to Franchisee the right to operate a Better Blend business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Better Blend 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; and
(v) engage in any action not specifically precluded by the express terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend Franchising (BBF) grants the franchisee the right to operate a Better Blend business solely at the location specified in the Franchise Agreement. The franchisee is obligated to develop, open, and operate the Better Blend business at that location for the entire term of the agreement and must exert their best efforts to promote and enhance the business. This means the franchisee's rights are tied to a specific location and require active involvement in building the business.
Better Blend also provides a protected territory, within which BBF will not establish or license another business selling similar goods or services under the same trademarks. However, this protection does not extend to Better Blend businesses already operating or under construction when the territory is determined. Furthermore, Better Blend retains the right to establish or license Better Blend businesses outside the territory, even if they impact the franchisee's business. They can also operate or license businesses in Limited Access Venues inside the territory. This indicates that while there is some territorial protection, it has limitations and is subject to Better Blend's strategic decisions.
Better Blend also retains the right to sell and license others to sell products and services in the territory through different channels of distribution, including the internet, under any trademarks. They can also acquire or be acquired by a competitor with outlets in the territory that compete with the business under different trademarks. These provisions highlight that the franchisee's rights are not exclusive in all aspects and that Better Blend maintains considerable flexibility in its operations and strategic partnerships, even within the franchisee's territory. Franchisees should be aware of these limitations and consider their potential impact on their business.