Who's expense is it to comply with recall instructions for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
"Losses" includes (but is not limited to) all losses; damages; fines; charges; expenses; lost profits; reasonable attorneys' fees; travel expenses, expert witness fees; court costs; settlement amounts; judgments; loss of BBF's reputation and goodwill; costs of or resulting from delays; financing; costs of advertising material and media time/space and the costs of changing, substituting or replacing the same; and any and all expenses of recall, refunds, compensation, public notices and other such amounts incurred in connection with the matters described.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the definition of "Losses" includes "any and all expenses of recall, refunds, compensation, public notices and other such amounts incurred in connection with the matters described." However, the document does not specify which party bears the responsibility for these expenses.
As the FDD does not explicitly state who is responsible for covering recall expenses, prospective Better Blend franchisees should seek clarification from the franchisor regarding this matter. Understanding the allocation of financial responsibility in the event of a product recall is crucial for assessing the potential financial risks associated with the franchise.
It would be prudent to inquire about Better Blend's history with recalls, if any, and to review the franchise agreement carefully with legal counsel to fully understand the franchisee's obligations and potential liabilities. This due diligence will help in making an informed decision about investing in a Better Blend franchise.