Under what circumstances will Better Blend not establish a company-owned or franchised outlet in a franchisee's protected territory?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
or competitive brands that we control.
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.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
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, franchisees are granted a protected territory where Better Blend will not establish a company-owned or franchised outlet selling similar goods or services under the same trademarks. However, this protection does not extend to restaurants located in limited access venues. These venues include enclosed shopping centers, universities, churches and other religious institutions, sports stadiums, amusement parks, airports, transportation centers, hospitals, military complexes, and restricted business complexes. If a Better Blend franchise is located within one of these limited access venues, the protected territory is limited solely to that venue.
For franchisees who sign a Multi-Unit Development Agreement (MUDA), Better Blend grants exclusive development rights until the date the final Better Blend location is scheduled to open. During this development period, Better Blend will not establish company-owned or franchised outlets selling the same or similar goods or services under the same trademarks within the franchisee's development area. This territorial exclusivity is contingent upon meeting the development schedule outlined in the MUDA and remaining in compliance with all franchise agreements.
It is important to note that Better Blend retains the right to solicit and accept orders from consumers within a franchisee's territory through other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales. Better Blend does not provide any compensation to franchisees for sales made through these alternative channels within their protected territory. This means that while a physical Better Blend location will not be established in the protected territory, Better Blend can still directly compete for customers in that area through online and direct sales methods.