Does Better Blend currently receive payments from designated suppliers based on franchisee purchases?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not currently receive payments from any designated suppliers based on purchases by you or other franchisees. However, the franchise agreement does not prohibit us from doing so. We have the right to earn a profit from any product we supply or from designated suppliers. We are not required to give you an accounting of any payments we receive from designated suppliers, nor are we required to share any benefits of supplier payments with you or with any other franchisee.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend does not currently receive payments from designated suppliers based on franchisee purchases. However, the franchise agreement does not prohibit them from doing so in the future. Better Blend retains the right to earn a profit from any product they supply or from designated suppliers.
This is a common practice in franchising, where franchisors may negotiate deals with suppliers and receive rebates or commissions based on franchisee purchases. While Better Blend isn't currently engaging in this practice, the FDD makes it clear that they reserve the right to do so. This means that the cost of goods for franchisees could potentially increase in the future if Better Blend decides to implement such arrangements.
It is important to note that Better Blend is not required to provide franchisees with an accounting of any payments they receive from designated suppliers, nor are they required to share any benefits of supplier payments with franchisees. This lack of transparency could be a concern for some prospective franchisees, as they may not know the true cost of goods or whether Better Blend is profiting from these arrangements.