Is a Better Blend franchisee likely to face competition from other distribution channels?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
We do not permit you to use any other channels of distribution (such as the internet or catalog sales).
Your use of catering and third-party delivery services is subject to our approval. We currently do not restrict the geographic area in which you may provide catering and third-party delivery services, but we reserve the right to do so in the future.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee may face competition from other distribution channels. The FDD states that franchisees will not receive an exclusive territory and "may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control." This means that Better Blend retains the right to use various methods to sell within a franchisee's territory.
Better Blend is not restricted from soliciting or accepting orders from consumers inside a franchisee's territory. They reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within the territory using their principal trademarks or different trademarks than the franchisee uses. The franchisee will not receive any compensation for these sales.
While franchisees are not permitted to use channels of distribution like the internet or catalog sales themselves, they can use catering and third-party delivery services, subject to Better Blend's approval. Although Better Blend currently does not restrict the geographic area for catering and third-party delivery services, they reserve the right to do so in the future. This lack of territorial exclusivity and the franchisor's right to utilize other distribution channels within the franchisee's territory are important factors for prospective franchisees to consider.