Under what conditions does Better Blend have the right to temporarily manage a Better Blend franchisee's business?

According to Better Blend's 2024 Franchise Disclosure Document, Better Blend has the right to temporarily manage a franchisee's business under specific circumstances. These circumstances include if the franchisee dies or becomes incapacitated, if Better Blend exercises its right to purchase the business after the franchise agreement ends, or if the franchisee operates the business in a dangerous manner.

If Better Blend takes over temporary management, the franchisee will be responsible for paying a fee of 10% of adjusted gross sales, in addition to Better Blend's expenses incurred during the management period. Adjusted Gross Sales is defined in the franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products sold by you, whether for cash or credit. It also includes any proceeds you receive from business interruption insurance. Adjusted Gross Sales does not include (i) coupons, discounts, and bona fide refunds to customers, (ii) sales taxes collected, or (iii) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Adjusted Gross Sales).

This provision ensures that Better Blend can maintain brand standards and operational integrity even when a franchisee is unable to do so. For a prospective franchisee, this highlights the importance of having contingency plans in place for unforeseen circumstances such as death or incapacitation. Additionally, it underscores the need to adhere to Better Blend's operational standards to avoid being deemed as operating the business in a dangerous manner, which could trigger temporary management by the franchisor.