Does Better Blend currently require franchisees to contribute to a local or regional advertising cooperative?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 6 OTHER FEES*
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 6% of your adjusted | Weekly, on | See Notes 1, 2 and 3. | |
| gross sales | Tuesday | ||
| Currently, 1% of | Weekly, on | We reserve the right to increase the | |
| your adjusted gross | Tuesday | Marketing Fund Contribution to 2% of | |
| sales | your adjusted gross sales. | ||
| As determined by | We have the right to establish local or | ||
| the cooperative. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are not currently required to contribute to a local or regional advertising cooperative. However, Better Blend retains the right to establish these cooperatives in the future. If a cooperative is established, franchisees who are members may be required to contribute between 1% and 5% of their adjusted gross sales, as determined by a vote among the cooperative members.
This means that while there is no immediate requirement for franchisees to pay into a local advertising cooperative, the possibility exists. The contribution amount would be determined by the cooperative members themselves, offering some level of control to the franchisees within that region. This setup allows for localized marketing efforts tailored to specific regional needs, but also introduces a potential additional cost that franchisees must be prepared for.
It's important for prospective Better Blend franchisees to understand the conditions under which these cooperatives may be formed and how the contribution amounts are decided. Franchisees should inquire about the criteria Better Blend uses to determine the necessity of forming a cooperative in a specific region, and what support or guidance Better Blend provides to these cooperatives. Understanding these factors will help franchisees better anticipate and plan for potential future marketing expenses.