What is the weekly Non-Compliance Fee that Better Blend may charge after the initial non-compliance period?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
mployee to BBF's training program after opening, BBF may charge its then-current training fee. As of the date of this Agreement, the training fee is $250 per person per day.
- 4.6 Non-Compliance Fee. BBF may charge Franchisee $500 for each instance of noncompliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to BBF) which Franchisee fails to cure after 30 days' notice. Thereafter, BBF may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of BBF's internal cost of personnel time attributable to addressing the noncompliance, and it is not a penalty or estimate of all d
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee fails to correct non-compliance with the System Standards or the Franchise Agreement (excluding non-payment of fees) within 30 days of notice, Better Blend may impose a Non-Compliance Fee. Initially, Better Blend can charge $500 for each instance of noncompliance.
Following this initial charge, if the non-compliance continues, Better Blend has the right to charge the franchisee $250 per week until the non-compliance is resolved. This fee is designed to cover Better Blend's internal costs related to addressing the non-compliance and is not considered a penalty or a comprehensive estimate of all potential damages resulting from the breach.
It's important to note that this Non-Compliance Fee is in addition to any other rights and remedies Better Blend may have, including the possibility of default and termination of the Franchise Agreement. This means that franchisees need to promptly address any issues of non-compliance to avoid accumulating weekly fees and potentially more severe consequences.