Is a Better Blend franchisee required to use third-party delivery services approved by BBF?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Method of Sale. Franchisee shall make sales only at the Location or by third-party delivery services as described in subsection (e).
- (e) Delivery Services. 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 also retains the right to negotiate system-wide agreements with these third-party delivery services, and franchisees must comply with these agreements.
Better Blend also reserves the right to set delivery boundaries, which may not be the same as the franchisee's territory. The Adjusted Gross Sales on deliveries will be calculated based on the amount paid by the customer to the delivery service, excluding any fees charged by the delivery service directly to the customer, such as delivery fees, service charges, or gratuities.
This means that a Better Blend franchisee's choice of delivery services is not entirely their own. They must use only the services that Better Blend has approved or requires. Furthermore, franchisees must adhere to any system-wide agreements Better Blend establishes with these delivery services. This could impact a franchisee's revenue, as the gross sales calculation excludes fees the delivery service charges to the customer, affecting the royalty payments to Better Blend.