What is the base year used for inflation adjustments to the Better Blend Technology Fee limit?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
es otherwise. BBF may add, remove, or alter the software or technology products or services that it provides. BBF may change Technology
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the base year for calculating inflation adjustments to the Technology Fee limit is January 1, 2022.
The Technology Fee is a recurring fee that Better Blend may charge franchisees for software and other technology-related services. While Better Blend can modify the Technology Fee with 30 days' notice, the FDD stipulates that the fee will not exceed $500 per month. However, Better Blend retains the right to increase this $500 limit to account for inflation from the specified base year.
For a prospective Better Blend franchisee, this means that the monthly Technology Fee could potentially increase over time due to inflation. It is important to note that while the FDD specifies the base year for inflation adjustments, it does not provide details on how frequently the adjustment will be made or the specific index that will be used to calculate inflation. A potential franchisee should clarify these details with Better Blend to fully understand the potential financial impact of inflation on the Technology Fee during the term of the franchise agreement.