Can Better Blend unreasonably withhold its written approval to open the Business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
due. If Franchisee borrows money, it shall comply with the terms of its loan and make all loan payments when due. If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.
- 7.17 Public Relations. Franchisee shall not make any public statements (including giving interviews or issuing press releases) regarding Better Blend, the Business, or any particular incident or occurrence related to the Business, without BBF's prior written approval, which will not be unreasonably withheld.
- 7.18 Association with Causes. Franchisee shall not in the name of the Business (i) donate money, products, or services to any charitable, political, religious, or other organization or cause, or (ii) act in support of any such organization or cause, without BBF's prior written approval, which will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, while the document does not explicitly address whether Better Blend can unreasonably withhold approval to open the business, it does state that Better Blend's approval cannot be unreasonably withheld in certain circumstances.
Specifically, section 7.17 states that franchisees shall not make any public statements regarding Better Blend without prior written approval, which will not be unreasonably withheld. Section 7.18 states that franchisees shall not donate money, products, or services to any organization or cause without prior written approval, which will not be unreasonably withheld. Section 7.20 states that franchisees shall not engage a third-party management company to manage the business without prior written approval, which will not be unreasonably withheld.
While these sections do not directly address the opening of the business, they do establish a precedent that Better Blend's approval cannot be unreasonably withheld in certain situations. A prospective franchisee should inquire with Better Blend about the circumstances under which approval to open a business could be withheld and what recourse the franchisee has if they believe approval is being unreasonably withheld.