Is a Better Blend franchisee required to comply with system-wide agreements negotiated by BBF with third-party delivery services?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall use such third-party delivery services as BBF may require or approve, and only such third-party delivery services. BBF reserves the right to negotiate system-wide agreements with third-party delivery services, and Franchisee shall comply with any such agreement. BBF reserves the right to set boundaries for delivery, which need not be the same as the Territory. Adjusted Gross Sales on deliveries will be calculated on the amount paid by the customer to the delivery service (not counting any fees charged by the delivery service to the customer in addition to Better Blend prices, such as a delivery fee, service charge, or gratuity charged by the delivery service to the customer), rather than the net amount received by Franchisee from the delivery service.
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 use third-party delivery services that Better Blend requires or approves. Better Blend retains the right to negotiate system-wide agreements with these third-party delivery services, and franchisees must comply with any such agreements.
This means that a Better Blend franchisee does not have the freedom to choose their own delivery partners or negotiate individual terms. Instead, they must adhere to the delivery services and agreements that Better Blend establishes for the entire system. This ensures consistency and potentially leverages the franchisor's buying power for better rates or service levels.
The FDD also specifies how Adjusted Gross Sales are calculated for deliveries. It's based on the amount the customer pays to the delivery service, excluding any fees the delivery service charges directly to the customer (like delivery fees, service charges, or gratuities). This is important for calculating royalties and other financial obligations to Better Blend.
This requirement ensures brand consistency and potentially favorable terms negotiated by Better Blend. However, it also limits the franchisee's autonomy in choosing delivery partners and negotiating terms that might be more favorable for their specific location or business circumstances.