Does the Better Blend franchise agreement require franchisees to comply with System Standards at their own expense?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
best efforts to promptly resolve any customer complaints. BBF may take any action it deems appropriate to resolve a customer complaint regarding the Business, and BBF may require Franchisee to reimburse BBF for any expenses.
- 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by BBF for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping. BBF shall share with Franchisee the results of these programs, as they pertain to the Business. Franchisee must meet or exceed any minimum score requirements set by BBF for such programs. BBF may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
- 7.10 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by BBF (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by BBF.
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by BBF, in the manner specified by BBF in the Manual or otherwise in writing. Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Better Blend business. If Franchisee honors a gift card or other pre-paid system sold by another location, or vice versa, BBF and Franchisee will cooperate so that the cash received is fairly allocated to the location where that gift card or other pre-paid system is redeemed (subject to fees and charges). Franchisee shall comply with all procedures and specifications of BBF related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are generally responsible for covering the expenses associated with adhering to the System Standards. This includes participating in evaluation and compliance programs, as detailed in Section 7.9 of the Franchise Agreement. Franchisees must participate at their own expense in programs required by Better Blend for obtaining customer evaluations, reviewing compliance with the system, and managing customer complaints. These programs may include customer feedback systems, customer survey programs, and mystery shopping.
Furthermore, franchisees are obligated to acquire and use technology according to System Standards, but they bear the sole responsibility for the costs of acquiring, operating, maintaining, and upgrading their technology. This encompasses ensuring the technology interfaces properly with Better Blend's and third-party computer systems, and complying with data security standards and privacy laws.
Better Blend also requires franchisees to sell gift cards, participate in loyalty programs, and engage in customer incentive programs at their own expense. This means franchisees must cover the costs of issuing gift cards, managing loyalty programs, and providing customer incentives as specified by Better Blend. These stipulations highlight that franchisees should be prepared to invest in various aspects of the business to meet Better Blend's standards and maintain consistent operations.