What is Better Homes And Gardens Real Estate's definition of 'Reasonable Business Judgment'?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to make reasonable changes in the P&P Manual that we determine are appropriate in our Reasonable Business Judgment for the continued success and development of the System and its franchisees. We may also modify the P&P Manual at any time to reflect changes in the System and will reflect those in the P&P Manual located on the intranet site. At your own expense, at the applicable then-current fees and costs, you must adopt on a timely basis (but no later than ninety (90) days after notice) any such modifications. If there is any conflict, discrepancy or ambiguity between the terms of this Agreement and the P&P Manual, the terms of this Agreement will control. If a dispute arises over the P&P Manual contents, the master copy that we maintain on our intranet site, will control.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Better Homes And Gardens Real Estate FDD, the franchisor reserves the right to make reasonable changes in the P&P Manual that they determine are appropriate in their Reasonable Business Judgment for the continued success and development of the System and its franchisees. Better Homes And Gardens Real Estate may also modify the P&P Manual at any time to reflect changes in the System and will reflect those in the P&P Manual located on the intranet site.
As a Better Homes And Gardens Real Estate franchisee, you are obligated to adopt any such modifications no later than ninety (90) days after notice, and at your own expense, at the applicable then-current fees and costs. In the event of any conflict, discrepancy, or ambiguity between the terms of the Franchise Agreement and the P&P Manual, the terms of the Franchise Agreement will take precedence. If a dispute arises over the contents of the P&P Manual, the master copy maintained by Better Homes And Gardens Real Estate on its intranet site will be the controlling version.
This clause allows Better Homes And Gardens Real Estate to adapt its operating procedures and standards as needed for the benefit of the entire franchise system. While franchisees must comply with these changes, the standard of "Reasonable Business Judgment" provides some assurance that changes will be rationally related to the success and development of the system. Franchisees should stay informed about updates to the P&P Manual and be prepared to implement changes in a timely manner to remain compliant with the franchise agreement.