Under what circumstances does Better Blend NOT have a right of first refusal for a transfer?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee (or its Owners) shall provide to BBF a copy of the terms and conditions of any Transfer.
For a period of 30 days from the date of BBF's receipt of such copy, BBF will have the right, exercisable by notice to Franchisee, to purchase the assets subject of the proposed Transfer for the same price and on the same terms and conditions (except that if some or all of the purchase price is not payable in cash, BBF may pay the equivalent value in cash for the purchase price).
If BBF does not exercise its right of first refusal, Franchisee may proceed with the Transfer, subject to the other terms and conditions of this Article.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if Better Blend does not exercise its right of first refusal within 30 days of receiving a copy of the transfer terms, the franchisee is free to proceed with the transfer to another party.
Specifically, the franchisee must provide Better Blend with a copy of the terms and conditions of any proposed transfer. Better Blend then has 30 days from the date they receive this copy to decide whether to exercise their right to purchase the assets subject to the transfer. This purchase would be for the same price and under the same terms and conditions as the proposed transfer. However, if the original purchase price isn't payable in cash, Better Blend can pay the equivalent value in cash.
If Better Blend chooses not to exercise its right of first refusal within that 30-day period, the franchisee is then permitted to move forward with the transfer to the third party, provided they meet all other requirements outlined in the franchise agreement.