Must a Better Blend franchisee comply with Better Blend's procedures related to gift cards and loyalty programs?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 must comply with all procedures and specifications related to gift cards, certificates, and other pre-paid systems, as well as customer loyalty, membership/subscription, or customer incentive programs. This means a franchisee doesn't have the flexibility to create their own programs or deviate from the standards set by Better Blend.
Better Blend franchisees are required to sell or 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 Better Blend. These programs must be implemented in the manner specified by Better Blend in the manual or in writing. Franchisees are also obligated to honor all valid gift cards and other pre-paid systems, regardless of whether they were issued by the franchisee's location or another Better Blend business.
Better Blend and the franchisee will cooperate to ensure that cash received from honoring gift cards or pre-paid systems sold by another location is fairly allocated to the location where the gift card or pre-paid system is redeemed. This allocation is subject to fees and charges. This ensures that franchisees are compensated for honoring gift cards sold at other locations.
Overall, these requirements ensure consistency across all Better Blend locations in terms of payment methods and customer loyalty programs. This can help maintain brand uniformity and customer satisfaction, but it also means franchisees have limited control over these aspects of their business.