Under what circumstances does Better Blend have the right to cure a franchisee's default?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
(x) the Business is operated in a manner which, in BBF's reasonable judgment, constitutes a significant danger to the health or safety of any person, and Franchisee fails to cure such danger within 48 hours after becoming aware of the danger (due to notice from BBF or otherwise);
(xi) Franchisee fails to meet the health inspection standards described in Section 7.3(e) two or more times in any 36-month period;
(xii) Franchisee fails to achieve a passing score on an inspection conducted by BBF two or more times in any 36-month period;
(xiii) Franchisee has received two or more notices of default (or a single notice of more than one default) and Franchisee commits another breach of this Agreement, all in the same 12-month period;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, Better Blend has a limited right to cure a franchisee's default in specific situations. If the operation of the Better Blend business, in Better Blend's reasonable judgment, poses a significant danger to the health or safety of any person, the franchisee has 48 hours to cure the danger after becoming aware of it, whether through notice from Better Blend or otherwise.
If the franchisee fails to meet health inspection standards described in Section 7.3(e) two or more times in any 36-month period, this also constitutes a default that Better Blend may act upon. Similarly, if a franchisee fails to achieve a passing score on an inspection conducted by Better Blend two or more times in any 36-month period, this can trigger intervention.
It's important to note that if a franchisee receives two or more notices of default (or a single notice of more than one default) and then commits another breach of the Franchise Agreement within the same 12-month period, this situation does not explicitly provide a cure period. However, the inclusion of cure periods for specific defaults suggests that Better Blend aims to provide franchisees an opportunity to rectify certain critical issues before termination, particularly those related to health, safety, and compliance with brand standards.