Are there any exceptions to Better Blend's right of first refusal to acquire the franchisee's business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| n. Franchisor’s right of | If you want to transfer your business (other | |
| first refusal to acquire | ||
| franchisee’s business | than to your co-owner or your spouse, sibling, or child), we have a right of first refusal. |
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, Better Blend has the right of first refusal if a franchisee wants to transfer their business. This means that before a franchisee can sell their business to a third party, they must first offer Better Blend the opportunity to purchase it on the same terms.
However, there is an exception to Better Blend's right of first refusal. Better Blend does not have the right of first refusal if the transfer is to the franchisee's co-owner, spouse, sibling, or child.
This provision is typical in franchising, allowing Better Blend to maintain control over who joins their franchise system. Franchisees should consider this when planning for the future sale or transfer of their Better Blend business.