Can Better Blend become a supplier of goods or services in the future?

According to Better Blend's 2024 Franchise Disclosure Document, Better Blend retains the right to become a supplier or the sole supplier of goods and services that franchisees are required to purchase. Currently, Better Blend Nutrition LLC, an affiliate, is the sole supplier of mixes, to-go bags, BlendBox Pouches, and BlendBox Boxes. However, the FDD specifies that neither Better Blend nor its affiliates, other than Better Blend Nutrition LLC, are currently suppliers of any other required goods or services.

Better Blend also has the right to require franchisees to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating their businesses either from Better Blend, its designee, or from approved suppliers, or according to Better Blend's specifications. Franchisees must comply with any changes Better Blend makes to these requirements in the future. This gives Better Blend considerable control over the supply chain and the products franchisees use.

While Better Blend does not currently receive payments from designated suppliers based on franchisee purchases, the franchise agreement does not prohibit them from doing so in the future. Better Blend has the right to earn a profit from any product they supply or from designated suppliers, and they are not required to provide franchisees with an accounting of these payments or share any benefits. This arrangement is not uncommon in franchising, as franchisors often derive revenue from supplier relationships, but it's important for franchisees to understand that Better Blend could potentially profit from required purchases without necessarily passing those benefits on to the franchisees.