For Better Blend, when are additional initial franchise fees due?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|
| Additional initial franchise fees (see Note 4) | $27,500 | - $47,500 | Check or wire transfer | Upon signing the MUDA | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, additional initial franchise fees are due upon signing the Multi-Unit Development Agreement (MUDA). These fees, which range from $27,500 to $47,500, are payable to Better Blend via check or wire transfer.
Note 4 of Item 7 clarifies that these reduced franchise fees apply if you sign a Multi-Unit Development Agreement for three to five franchises. The initial franchise fee for the first unit is detailed separately under the Franchise Agreement. The additional franchise fees are $30,000 for the second franchise, $25,000 for the third franchise, and $20,000 for the fourth and each additional franchise. According to Note 4, 50% of the additional franchise fees are due upon signing the MUDA.
This means that if a prospective franchisee plans to open multiple Better Blend locations, they will need to be prepared to pay a portion of the franchise fees for those additional locations upfront when committing to the development agreement. This is a significant financial consideration and should be factored into the franchisee's initial investment planning.