What is the acceptable method of payment for the initial franchise fee for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of expenditure | Amour | nt | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|---|
| Initial franchise fee (see Note 1) | $35,000 - | $35,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Additional initial franchise fees (see Note 4) | $27,500 | - $47,500 | Check or wire transfer | Upon signing the MUDA | Us |
Notes
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- Your lease security deposit and utility deposits will usually be refundable unless you owe money to the landlord or utility provider. None of the other expenditures in this table will be refundable. Neither we nor any affiliate finances any part of your initial investment.
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- This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises. The franchise fee for your first unit is counted in the "Estimated Initial Investment – Franchise Agreement" table. Your initial franchise fees are reduced to $30,000 for the second franchise, $25,000 for the third franchise, and $20,000 for the fourth and each additional franchise. You will pay 50% of the additional franchise fees upon signing the MUDA.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the acceptable methods of payment for the initial franchise fee are check or wire transfer. The initial franchise fee ranges from $35,000 to $35,000, and is due upon signing the franchise agreement. The payment is to be made to "Us", which refers to the Better Blend franchisor.
For franchisees considering a Multi-Unit Development Agreement (MUDA), the payment method for additional initial franchise fees is also check or wire transfer. These fees range from $27,500 to $47,500 and are due upon signing the MUDA. Note 4 in Item 7 states that the initial franchise fees are reduced to $30,000 for the second franchise, $25,000 for the third franchise, and $20,000 for the fourth and each additional franchise. You will pay 50% of the additional franchise fees upon signing the MUDA.
It is important to note that the initial franchise fee is non-refundable, as stated in Note 1 of Item 7. Prospective franchisees should carefully consider their financial situation and business plan before signing the franchise agreement and submitting the initial franchise fee to Better Blend.