Who is responsible for the financial risks and rewards related to the location of my Beyond Juicery Eatery restaurant?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
Restaurant Premises. In order to ensure a uniform quality of products and services throughout the "Beyond Juicery + Eatery" System, you must maintain and comply with our standards. Although you are not required to purchase or lease real estate from us or our affiliates, we must approve the location for your Restaurant (see Item 11), provided, however, that our approval of your location is not a representation or evaluation that we believe the location will be a profitable location for you. You are solely responsible for the financial risks and rewards related to the location. We also have the right, but not the obligation, to review and to approve or disapprove any lease for the Restaurant premises. You and the landlord must execute the Conditional Assignment of Lease form attached as Exhibit H to this disclosure document. You must construct and equip your Restaurant in accordance with our then-current approved design, specifications, and standards. In addition, it is your responsibility to ensure that your building plans comply with the Americans with Disabilities Act and all other federal, state, or local laws.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–32)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the financial risks and rewards associated with the restaurant's location. While Beyond Juicery Eatery must approve the location, this approval does not constitute a guarantee or assessment of the location's profitability. The document clearly states that the franchisee bears the ultimate responsibility for the financial outcomes tied to the chosen site.
This means that a prospective Beyond Juicery Eatery franchisee needs to conduct thorough due diligence on potential locations. This includes market research, demographic analysis, and assessment of local competition. While Beyond Juicery Eatery retains the right to approve or disapprove any lease for the Restaurant premises, the onus is on the franchisee to ensure the location is viable and likely to generate a return on investment. The franchisee also needs to ensure that their building plans comply with the Americans with Disabilities Act and all other federal, state, or local laws.
This allocation of responsibility is fairly standard in the franchise industry. Franchisors typically provide brand recognition, operational systems, and ongoing support, but franchisees are generally responsible for the financial performance of their individual locations. This arrangement incentivizes franchisees to actively manage their businesses and adapt to local market conditions. Prospective franchisees should carefully consider the implications of this responsibility and ensure they have the resources and expertise to make informed location decisions.