Must a Better Blend franchisee honor all valid gift cards, regardless of where they were issued?
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 are required to honor all valid gift cards and other pre-paid systems, regardless of whether the gift cards were issued by their specific franchise location or another Better Blend business. This policy is part of Better Blend's broader requirements related to payment systems, gift cards, and loyalty programs.
Better Blend franchisees must 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 are to be implemented as specified in the Manual or in writing by Better Blend. Franchisees are responsible for the expenses associated with these programs.
To ensure fairness in the system, Better Blend and the franchisee will cooperate to allocate the cash received from the redemption of gift cards or pre-paid systems to the location where the card or system was initially sold, although this allocation is subject to fees and charges. Franchisees must also comply with all procedures and specifications set by Better Blend related to these gift cards, certificates, pre-paid systems, and customer programs.
This requirement ensures consistency across the Better Blend brand and provides customers with the flexibility to use gift cards at any location. However, it also means that a franchisee may have to honor gift cards for which they did not directly receive the initial revenue, relying on the franchisor to properly allocate funds. Franchisees should ensure they understand the procedures for tracking and redeeming gift cards to ensure accurate financial reporting and reconciliation.