What is the estimated range for additional initial franchise fees for a Better Blend Multi-Unit Development Agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|
| First franchise (see table | $251,700 | - $570,500 | |||
| above) | |||||
| Additional initial franchise fees (see Note 4) | $27,500 | - $47,500 | Check or wire transfer | Upon signing the MUDA | Us |
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- This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises. The franchise fee for your first unit is counted in the "Estimated Initial Investment – Franchise Agreement" table. Your initial franchise fees are reduced to $30,000 for the second franchise, $25,000 for the third franchise, and $20,000 for the fourth and each additional franchise. You will pay 50% of the additional franchise fees upon signing the MUDA.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the estimated range for additional initial franchise fees under a Multi-Unit Development Agreement (MUDA) is $27,500 to $47,500. This fee is paid to Better Blend upon signing the MUDA.
Note 4 in Item 7 specifies that this estimate assumes the franchisee signs a Multi-Unit Development Agreement for three to five franchises. The initial franchise fee for the first unit is detailed separately under the standard "Franchise Agreement." The additional franchise fees are reduced for subsequent units: $30,000 for the second, $25,000 for the third, and $20,000 for the fourth and any additional franchises. The franchisee must pay 50% of these additional franchise fees upon signing the MUDA.
This structure incentivizes multi-unit development by lowering the franchise fee for each additional location. However, the upfront payment of 50% of the fees represents a significant initial investment. Prospective franchisees should carefully consider their development plans and financial capabilities before committing to a MUDA with Better Blend.