Under the Better Blend franchise agreement, can BBF communicate with a prospective lender of the franchisee?

According to the 2024 Better Blend Franchise Disclosure Document, Better Blend is authorized to communicate with a franchisee's prospective lenders about matters relating to the business. This authorization is irrevocable, meaning the franchisee cannot withdraw this permission once the agreement is in place. Better Blend can also provide information about the business to these lenders.

This provision in the franchise agreement allows Better Blend to share relevant details about the franchise's operations and financial performance with potential lenders. This could be beneficial for a franchisee seeking financing, as Better Blend's involvement might increase the lender's confidence. However, it also means that Better Blend has the franchisee's permission to disclose information to lenders, which the franchisee may want to consider.

It is a fairly common practice in franchising for franchisors to maintain open communication lines with franchisees' landlords and lenders. This helps protect the franchisor's brand and ensures that the franchisee has the necessary support to succeed. Prospective franchisees should consider the implications of this clause and discuss any concerns with Better Blend before signing the agreement.