Can a Better Blend franchisee use a vendor that is not an 'Approved Vendor'?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.2 New Vendor Approval. If BBF requires Franchisee to purchase a particular Input from an Approved Vendor, and Franchisee desires to purchase the Input from a vendor that is not an Approved Vendor, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by BBF. BBF may approve or disapprove the proposed new vendor in its sole discretion. BBF shall provide Franchisee with written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of Franchisee's request.
- 8.3 Alternate Input Approval. If BBF requires Franchisee to purchase a particular Input, and Franchisee desires to purchase an alternate to the Input, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by BBF. BBF may approve or disapprove the alternative Input in its sole discretion. BBF shall provide Franchisee with written notification of the approval or disapproval of any proposed alternate Input within 30 days after receipt of Franchisee's request.
- 8.4 Purchasing. BBF may negotiate prices and terms with vendors on behalf of the System. BBF may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees. BBF has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor and to impose a reasonable markup or charge for administering the payment program. BBF may implement a centralized purchasing system. BBF may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as BBF may determine.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee can request approval for an alternate vendor if they desire to purchase an input from someone other than an 'Approved Vendor'.
To do so, the franchisee must submit a written request to Better Blend, including any information, specifications, and/or samples requested by Better Blend. Better Blend has the sole discretion to approve or disapprove the alternative input. Better Blend will then provide written notification of the approval or disapproval of any proposed new vendor or alternate input within 30 days after receipt of the franchisee's request.
Better Blend may negotiate prices and terms with vendors on behalf of the entire Better Blend system and may receive rebates, payments, or other consideration from vendors in connection with franchisee purchases. Better Blend also has the right to collect payments from the franchisee on behalf of a vendor and remit the payments to the vendor, potentially imposing a reasonable markup or charge for administering this payment program. Better Blend may also implement a centralized purchasing system or establish a purchasing cooperative that franchisees may be required to join.