How are Adjusted Gross Sales calculated for deliveries made by a Better Blend franchisee?

According to Better Blend's 2024 Franchise Disclosure Document, Adjusted Gross Sales for deliveries are calculated based on the amount the customer pays to the third-party delivery service, not the net amount the franchisee receives from the delivery service. This calculation excludes any fees the delivery service charges the customer in addition to Better Blend prices, such as delivery fees, service charges, or gratuities.

This means that Better Blend franchisees will pay royalties and other fees based on the full customer payment made through the third-party delivery service, even if the franchisee doesn't directly receive that full amount. This is a common practice in franchise systems that utilize third-party delivery, as it simplifies sales tracking and ensures all sales are accounted for, regardless of deductions made by the delivery service.

For a prospective Better Blend franchisee, this is an important consideration for financial planning. Franchisees need to factor in the difference between the customer's total payment and their net revenue from delivery sales when forecasting profitability. It also highlights the importance of understanding the terms of any system-wide agreements Better Blend negotiates with third-party delivery services, as these agreements can directly impact the franchisee's revenue and fee obligations.