Under what condition will Better Blend franchisees sign a Multi-Unit Development Agreement (MUDA)?

According to Better Blend's 2024 Franchise Disclosure Document, a franchisee will sign a Multi-Unit Development Agreement (MUDA) if they and Better Blend agree that the franchisee will develop three or more franchises. The MUDA is in the form of Exhibit C to the disclosure document.

Under a MUDA, the franchisee's franchise fees are reduced. The franchise fee for the second outlet is $30,000, for the third outlet it is $25,000, and for the fourth and each additional outlet, the franchise fee is $20,000. Upon signing the MUDA, the franchisee will pay 50% of these franchise fees, with the balance due when they sign a letter of intent to lease each additional location. At that time, the franchisee must also sign a separate Franchise Agreement for the additional location.

The MUDA does not obligate the franchisee to develop additional outlets and can be terminated at any time without penalty. However, Better Blend has the right to terminate the franchisee's right to develop additional outlets if the development schedule in the MUDA is not met. The term of the MUDA will expire on the date that the last franchise is scheduled to open.

Better Blend may terminate the MUDA if the franchisee fails to satisfy the development schedule or if Better Blend has the right to terminate any franchise agreement with the franchisee due to the franchisee's default. The franchisee's right to develop each Better Blend Nutrition franchise after the first store is subject to the franchisee possessing sufficient financial and organizational capacity to develop, open, operate, and manage each additional Better Blend Nutrition business, and the franchisee must be in full compliance with all brand requirements at its open Better Blend Nutrition businesses and not in default under any Franchise Agreement or any other agreement with Better Blend.