Who bears the expense of participating in customer evaluation programs required by Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by BBF, in the manner specified by BBF in the Manual or otherwise in writing.
Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Better Blend business.
If Franchisee honors a gift card or other pre-paid system sold by another location, or vice versa, BBF and Franchisee will cooperate so that the cash received is fairly allocated to the location where that gift card or other pre-paid system is redeemed (subject to fees and charges).
Franchisee shall comply with all procedures and specifications of BBF related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are responsible for the expenses associated with participating in customer evaluation programs required by the company. Specifically, franchisees must participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs designated by Better Blend, and they must do so at their own expense.
This means that if Better Blend mandates a customer evaluation program, such as a mystery shopper initiative or a customer feedback platform, the franchisee will bear the costs. These costs could include fees for the evaluation service, incentives offered to customers for participation, or any equipment or software needed to implement the program. Franchisees are also responsible for meeting or exceeding any minimum score requirements set by Better Blend for these programs, as well as minimum scores from public internet review sites.
This requirement is fairly standard in franchising, as franchisors often implement quality control and customer satisfaction programs to maintain brand consistency and standards across all locations. By placing the expense on the franchisee, Better Blend ensures that each location is invested in and accountable for maintaining those standards. Prospective franchisees should factor these potential costs into their financial projections and business plans.