What is the administrative fee charged by Better Blend if it cures a franchisee's default?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
on under Section 14.2).
- 4.7 Reimbursement. BBF may (but is never obligated to) pay on Franchisee's behalf any amount that Franchisee owes to a supplier or other third party. If BBF does so or intends to do so, Franchisee shall pay such amount plus a 10% administrative charge to BBF within 15 days after invoice by BBF accompanied by reasonable documentation.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if Better Blend pays an amount that a franchisee owes to a supplier or other third party on the franchisee's behalf, the franchisee must pay that amount back to Better Blend, plus a 10% administrative charge. This repayment is due within 15 days of receiving an invoice from Better Blend, which will include reasonable documentation of the payment.
Additionally, if Better Blend has to take action to ensure a franchisee is meeting their obligations under the franchise agreement, the franchisee will have to reimburse Better Blend for its costs and expenses (including internal costs), plus 10% as an administrative fee.
These fees are in addition to other fees Better Blend may charge a franchisee, such as a $500 non-compliance fee for each instance of noncompliance with the System Standards or the Franchise Agreement that the franchisee fails to cure after 30 days' notice. After the initial 30-day period, Better Blend may charge the franchisee $250 per week until the franchisee ceases such non-compliance. These fees are designed to cover Better Blend's internal costs and are not considered a penalty.