Must Better Blend franchisees purchase kitchen equipment from approved suppliers?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
BlendBox Boxes.
- E. Restaurant Equipment; Other Inventory and Supplies. All of your kitchen equipment must meet our specifications and be purchased only from approved suppliers. You must purchase our proprietary protein blend from our specified vendor. All of your food, supplements, beverage, packaging, and other inventory purchases must meet our specifications and be purchased only from approved suppliers. You must use a distributor that we approve.
- F. Advertising and Marketing. Except as otherwise provided in the Brand Standards Manual and advertising or marketing materials that we furnish to you, you must submit all advertising and marketing materials to us for our written approval before use. You must ensure that all advertising or marketing materials that you use are clear, factual, ethical, and not misleading; comply with our brand standards; and comply with all laws. We have the right to establish and control all digital marketing.
Except as described above regarding Better Blend Nutrition LLC, neither we nor any affiliate is currently a supplier of any good or service that you must purchase. We reserve the right to be a supplier (or the sole supplier) of a good or service in the future. None of our officers own an interest in any supplier to our franchisees other than Better Blend Nutrition LLC.
Alternative Suppliers
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We have the sole discretion to approve or reject an alternative supplier. We may condition our approval on criteria we deem appropriate, such as evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product
testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees must purchase kitchen equipment from approved suppliers. Specifically, all kitchen equipment must meet Better Blend's specifications and be purchased only from approved suppliers. Additionally, franchisees must purchase the proprietary protein blend from Better Blend's specified vendor. All food, supplements, beverage, packaging, and other inventory purchases must meet Better Blend's specifications and be purchased only from approved suppliers, using a distributor that Better Blend approves.
Better Blend retains the right to require franchisees to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating their business either from Better Blend or its designee, or from suppliers approved by Better Blend, or according to Better Blend's specifications. Franchisees must comply with any changes Better Blend makes to these requirements in the future.
If a franchisee wants to use a supplier that is not on Better Blend's list of approved suppliers, they must request approval in writing. Better Blend has the sole discretion to approve or reject an alternative supplier and may condition approval on criteria such as evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. There is no fee for Better Blend to review or approve an alternate supplier. Better Blend will provide written notification of the approval or disapproval of any supplier within 30 days after receipt of the request. Better Blend may grant approvals of new suppliers or revoke past approvals of suppliers on written notice or by updating their Manual.
Better Blend estimates that the required purchases and leases to establish the business are 70% to 90% of the total purchases and leases to establish the business. Similarly, the required purchases and leases of goods and services to operate the business are estimated to be 70% to 90% of the total purchases and leases of goods and services to operate the business. This indicates a significant portion of a franchisee's expenses will be dictated by Better Blend's approved suppliers and specifications.