Under what conditions can BBF enter and manage a Better Blend business temporarily?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.13 Temporary Management. If (i) the Principal Executive dies or becomes incapacitated, (ii) this Agreement is terminated or expires and BBF elects to purchase assets of the Business as provided in Section 14.6, or (iii) Franchisee is operating the Business in a manner which, in BBF's reasonable opinion, constitutes a danger to the health or safety of any person, then BBF may (but is not obligated to) enter the Location and operate and manage the Business for Franchisee's (or Franchisee's estate's) account until this Agreement is terminated, the Business is transferred, the Business is purchased by BBF, or BBF returns the Business to Franchisee.
BBF's operation and management will not continue for more than 90 days without Franchisee's consent (or the consent of the representatives of Franchisee's estate).
If this Agreement has not terminated or expired, then BBF will account to Franchisee for all net income from the Business during the period in which BBF operates the Business.
BBF may collect a temporary management fee equal to 10% of Adjusted Gross Sales for the period in which BBF operates the Business, plus all expenses
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend Franchising, LLC (BBF) has the option to enter and manage a Better Blend business temporarily under specific circumstances. These circumstances include: (1) the death or incapacitation of the Principal Executive, (2) the termination or expiration of the Franchise Agreement, where BBF chooses to purchase the business's assets, or (3) if the franchisee operates the business in a manner that BBF reasonably believes poses a health or safety risk to any person.
If any of these conditions are met, BBF is permitted, but not obligated, to enter the location and manage the Better Blend business on behalf of the franchisee or their estate. This temporary management continues until the Franchise Agreement is terminated, the business is transferred, BBF purchases the business, or BBF returns the business to the franchisee. BBF's management cannot exceed 90 days without the franchisee's or their estate's consent.
During the period that BBF manages the Better Blend business, if the Franchise Agreement has not been terminated or expired, BBF will provide the franchisee with an accounting of all net income generated from the business. BBF is also entitled to collect a temporary management fee. This fee is equal to 10% of the Adjusted Gross Sales during the period of BBF's management, in addition to all expenses incurred during that time. This arrangement ensures that while BBF can step in to maintain the business's operation and brand standards, the franchisee's financial interests are also considered.