Under what circumstances might a Better Blend franchisee be required to reimburse Better Blend Franchising for expenses?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor shall pay to BBF all costs incurred by BBF (including reasonable
attorney fees) in enforcing this Guaranty. If multiple Guarantors sign this Guaranty, each will have joint and several liability.
Agreed to by:
Address: Address: Address:
Attachment 4 to Franchise Agreement
CONDITIONAL ASSIGNMENT OF BRAND ACCOUNTS
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee may be required to cover certain expenses. Specifically, if a guarantor is involved, the guarantor is responsible for paying all costs incurred by Better Blend, including reasonable attorney fees, should Better Blend need to enforce the Guaranty. If there are multiple guarantors, each bears joint and several liability.
Additionally, Better Blend may charge the franchisee the attendance fee for Better Blend's national or regional brand convention, regardless of whether the Principal Executive attends. The franchisee is also responsible for all travel and living expenses associated with attending any such meeting or convention.
These stipulations mean that a Better Blend franchisee could face unexpected costs if legal action is required to enforce a guaranty related to their franchise agreement, or if they choose not to send their Principal Executive to a required convention. Franchisees should factor these potential expenses into their financial planning and carefully consider the implications of the guaranty and meeting attendance requirements.