How is the Better Blend territory specified in the franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 150,000 people (combined population of work and residual). Your territory will usually be specified as a radius around your location. If your business location is not known when you sign your franchise agreement, then we will state your location and territory in a "Location Acceptance Letter" when we approve your location.
In your franchise agreement, we grant you a protected territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend outlet, except for restaurants located in limited access venues (meaning venues that serve primarily the customers located within a facility, such as enclosed shopping centers, universities, churches and other religious institutions, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes and restricted business complexes).
If your franchise is located in a "limited access venue", then your protected territory will consist solely of the venue.
If you sign a MUDA, we grant you an exclusive development until the date on which you are to open your final Better Blend location. In your development area, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Better Blend outlet. You will lose your territorial exclusivity if you fail to meet your development schedule, or if we terminate the MUDA because of your default under a franchise agreement.
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the franchise agreement will specify a territory determined by Better Blend. This territory typically contains a population of approximately 150,000 people, combining both the working and residential populations. The territory is usually defined as a radius around the franchisee's specific business location. If the location is not known when the franchise agreement is signed, Better Blend will specify the location and territory in a "Location Acceptance Letter" once the location is approved.
Better Blend grants a protected territory in the franchise agreement, but it is not exclusive. Within this territory, Better Blend will not establish company-owned or franchised outlets selling similar goods or services under the same trademarks, with an exception for restaurants in limited access venues like shopping centers, universities, or airports. If the franchise is located in a limited access venue, the protected territory consists solely of that venue.
If a franchisee signs a Multi-Unit Development Agreement (MUDA), Better Blend grants exclusive development rights until the final Better Blend location is opened. However, this exclusivity is contingent on meeting the development schedule and avoiding default under the franchise agreement. The FDD also states that there are no restrictions on Better Blend soliciting or accepting orders from consumers inside the franchisee's territory and that Better Blend reserves the right to use other channels of distribution, such as the internet, to make sales within the territory without compensating the franchisee.