What is the due date for the ongoing fee for a Better Blend franchise?
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. | regional advertising cooperatives. If you | ||
| Currently, none. | are a member of a cooperative, you and | ||
| other members may vote to require each | |||
| member to contribute between 1% and 5% | |||
| of adjusted gross sales to 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, the ongoing royalty fee, which is 6% of adjusted gross sales, is due weekly on Tuesday. The marketing fund contribution, currently at 1% of adjusted gross sales, is also due weekly on Tuesday.
Better Blend requires franchisees to report their adjusted gross sales each week. If a franchisee fails to report their adjusted gross sales, Better Blend will withdraw estimated royalty fees and marketing fund contributions based on 125% of the most recent adjusted gross sales reported. Once the franchisee reports the actual adjusted gross sales, Better Blend will adjust the fees accordingly.
Better Blend currently requires franchisees to pay royalty fees and other amounts due via preauthorized bank draft. However, Better Blend retains the right to require an alternative payment method. If Better Blend permits payment by credit card or another method that incurs a processing fee, the franchisee will be responsible for the processing fee.