factual

Does Better Blend currently have an advertising council composed of franchisees?

Better_Blend Franchise · 2024 FDD

Answer from 2024 FDD Document

Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–27)

What This Means (2024 FDD)

According to the 2024 Better Blend Franchise Disclosure Document, Better Blend does not currently have an advertising council composed of franchisees. The franchise agreement also does not grant Better Blend the authority to establish one. This means franchisees do not have a formal, representative body to provide input on advertising strategies and the use of marketing funds at the corporate level.

However, Better Blend has the right to require franchisees to participate in local or regional advertising cooperatives. The contribution amount to these cooperatives will be determined by a vote of the members, set between 1% and 5% of adjusted gross sales. Better Blend can define the cooperative's area based on media markets or other geographic criteria. Better Blend also retains the power to administer these cooperatives or delegate the responsibility to an outside company or the franchisee members.

In addition to potential advertising cooperatives, franchisees must contribute 1% of adjusted gross sales per week to Better Blend's Marketing Fund, with Better Blend reserving the right to increase this contribution to 2%. It is important to note that outlets owned by Better Blend are not obligated to contribute to the Marketing Fund. While Better Blend will provide unaudited annual financial statements of the Marketing Fund upon request, the fund itself is not audited. This structure centralizes advertising decisions with the franchisor, although franchisees may have some influence at the local or regional level if advertising cooperatives are formed.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.