After the transfer or deletion of a Brand Account, what liability does a Better Blend franchisee retain to the Provider?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2. Transfer or Deletion. Franchisee hereby authorizes the service provider of each Brand Account (the "Provider") to transfer the Brand Account to BBF (or its designee) or to delete the Brand Account upon the written instruction of BBF. Franchisee hereby grants BBF an irrevocable limited power of attorney on behalf of Franchisee to direct any Provider to transfer or delete a Brand Account. In such an event, Franchisee will have no further right, title or interest in the Brand Account but will remain liable to the Provider for all past due fees owing to the Provider on or before the date on which the assignment is effective. BBF will have no liability or obligation of any kind to a Provider arising prior to the effective date of transfer or deletion. Franchisee agrees to take all reasonable steps necessary to effectuate the transfer or deletion (as determined by BBF) of each Brand Account.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee remains liable to the service provider of each Brand Account (the "Provider") for all past due fees owed on or before the date the assignment of the Brand Account to Better Blend is effective, even after the Brand Account is transferred or deleted. Better Blend assumes no liability for any obligations arising prior to the effective date of the transfer or deletion.
This means that if a Better Blend franchisee has outstanding payments for services related to their Brand Accounts (such as website hosting, social media management, or email services) at the time the Franchise Agreement terminates or expires, they are still responsible for settling those debts. This liability exists independently of Better Blend's involvement and continues even after Better Blend takes control of the Brand Accounts.
For a prospective Better Blend franchisee, this highlights the importance of maintaining good financial standing with all service providers managing Brand Accounts. Franchisees should ensure all bills are paid promptly to avoid accumulating debt that could persist even after the franchise agreement ends. Careful management and documentation of these accounts are essential to prevent potential financial liabilities during and after the franchise term.
Better Blend's right to assume ownership or direct deletion of these accounts underscores the franchisor's control over the brand's digital presence. Franchisees should be aware that while they manage these accounts during the franchise term, ultimate control and ownership reside with Better Blend, and any outstanding financial obligations remain the franchisee's responsibility.