On what day of the week is the ongoing fee due for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the ongoing fees, specifically the royalty fee and marketing fund contribution, are due weekly on Tuesday. The royalty fee is 6% of your adjusted gross sales, while the marketing fund contribution is currently 1% of your adjusted gross sales. However, Better Blend retains the right to increase the marketing fund contribution up to 2% of your adjusted gross sales.
It is important to note that these fees are calculated based on your adjusted gross sales, which you are required to report to Better Blend weekly. Failure to report your adjusted gross sales will result in Better Blend estimating the royalty fees and marketing fund contributions based on 125% of your most recently reported adjusted gross sales. The actual fees will be reconciled once you provide the accurate sales figures.
Better Blend requires franchisees to pay royalty fees and other amounts due via preauthorized bank draft. However, they reserve the right to require an alternative payment method. If Better Blend permits you to pay by credit card or any other method that incurs a processing fee, you will be responsible for covering the amount of that processing fee. Franchisees should be aware of these payment terms and potential additional costs associated with alternative payment methods.
Prospective Better Blend franchisees should carefully consider these ongoing fees and payment terms as part of their financial planning. Understanding the calculation, due date, and acceptable payment methods for these fees is crucial for maintaining compliance and avoiding potential penalties or additional charges.