What fee does Better Blend charge when temporarily managing a Better Blend franchisee's business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 10% of adjusted | We have the right to temporarily manage | ||
| gross sales plus our | your business and charge this fee if (i) you | ||
| expenses | die or become incapacitated, (ii) we | ||
| exercise our right to purchase your | |||
| business after your franchise agreement | |||
| end, or (iii) you operate the business in a | |||
| dangerous manner. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if Better Blend temporarily manages a franchisee's business, the franchisee will be charged 10% of adjusted gross sales, plus Better Blend's expenses.
Better Blend has the right to temporarily manage a business if a franchisee dies or becomes incapacitated, if Better Blend exercises its right to purchase the business after the franchise agreement ends, or if the franchisee operates the business in a dangerous manner.
Adjusted Gross Sales is defined in the Better Blend franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products sold by you, whether for cash or credit. It also includes any proceeds you receive from business interruption insurance. Adjusted Gross Sales does not include (i) coupons, discounts, and bona fide refunds to customers, (ii) sales taxes collected, or (iii) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Adjusted Gross Sales).
This fee covers Better Blend's management of the location and any associated costs during the period of temporary management. It is important for prospective franchisees to understand the circumstances under which Better Blend might take over operations and the financial implications of such an event.