Does Better Blend disclose its criteria for approving alternative suppliers?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Alternative Suppliers
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We have the sole discretion to approve or reject an alternative supplier. We may condition our approval on criteria we deem appropriate, such as evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product
testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Issuing Specifications and Standards
We issue specifications and standards to you for applicable aspects of the franchise in our Manual and/or in written directives. We may issue new specifications and standards for any aspect of our brand system, or modify existing specifications and standards, at any time by revising our Manual and/or issuing new written directives (which may be communicated to you by any method we choose). We will generally (but are not obligated to) issue new or revised specifications after evaluating the intended changes. We may also conduct limited market testing in one or more outlets.
Revenue to Us and Our Affiliates
Our affiliate Better Blend Nutrition LLC will receive revenue from franchisee purchases of certain inventory items. Its revenue from all required purchases and leases of products and services by franchisees in the prior fiscal year was $139,598.63
Proportion of Required Purchases and Leases
We estimate that the required purchases and leases to establish your business are 70% to 90% of your total purchases and leases to establish your business.
We estimate that the required purchases and leases of goods and services to operate your business are 70% to 90% of your total purchases and leases of goods and services to operate your business.
Payments by Designated Suppliers to Us
We do not currently receive payments from any designated suppliers based on purchases by you or other franchisees.
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, franchisees who wish to use a supplier not already approved must request approval in writing from Better Blend. Better Blend has the sole discretion to approve or reject any alternative supplier. While Better Blend may condition its approval on criteria such as evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews, the specific criteria for approving suppliers are not disclosed to franchisees.
Better Blend will provide written notification of the approval or disapproval of any proposed supplier within 30 days after receiving the request. Approvals of new suppliers or revocations of past approvals can be issued via written notice or by updating the Brand Standards Manual. This means that while a franchisee can seek alternative suppliers, Better Blend retains significant control over the supply chain and can change approved suppliers at its discretion.
This policy is fairly common in franchising, as franchisors want to maintain quality control and brand consistency. However, the lack of transparency regarding the specific criteria could make it difficult for a franchisee to find and propose alternative suppliers that are likely to be approved. Prospective franchisees should inquire about the specific factors Better Blend considers most important when evaluating alternative suppliers to better understand the likelihood of approval.
Better Blend estimates that required purchases and leases represent 70% to 90% of the total purchases and leases necessary to both establish and operate the business. This high percentage underscores the importance of understanding Better Blend's supplier approval process and the potential limitations on sourcing products and services independently.