Under what conditions can a Better Blend franchisee terminate the franchise agreement due to a violation by the franchisor?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| d. Termination by | FA: § 14.1 | If we violate a material provision of the |
| franchisee | ||
| MUDA: § 4 | franchise agreement and fail to cure or to make | |
| substantial progress toward curing the violation | ||
| within 30 days after notice from you. | ||
| If you sign a MUDA, you may terminate it at | ||
| any time. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee can terminate the franchise agreement if Better Blend violates a material provision of the agreement. However, the franchisee can only terminate if Better Blend fails to cure the violation or make substantial progress toward curing it within 30 days after receiving notice of the violation from the franchisee. This stipulation is outlined in Section 14.1 of the Franchise Agreement and Section 4 of the Multi-Unit Development Agreement (MUDA).
This means that a Better Blend franchisee cannot immediately terminate the agreement upon discovering a violation by the franchisor. They must first provide written notice to Better Blend, giving them 30 days to either fix the problem or demonstrate significant steps towards resolving it. If Better Blend fails to take appropriate action within this timeframe, the franchisee then has grounds to terminate the agreement.
It's important to note that if a franchisee signs a Multi-Unit Development Agreement (MUDA), they have the option to terminate the MUDA at any time, regardless of any violation by Better Blend. However, termination of the MUDA by the franchisee does not automatically give Better Blend the right to terminate the underlying franchise agreement. Conversely, if Better Blend terminates the franchise agreement, they do have the right to terminate the MUDA.