Are Better Blend franchisees required to purchase restaurant equipment from approved suppliers?

According to Better Blend's 2024 Franchise Disclosure Document, franchisees are required to 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 also meet Better Blend's specifications and be purchased from approved suppliers, using a distributor that Better Blend approves.

This requirement ensures consistency across all Better Blend locations, maintaining brand standards and quality control. However, it also limits the franchisee's autonomy in sourcing equipment and supplies, potentially impacting costs and profit margins. Franchisees are not allowed to use suppliers that are not on Better Blend's list of approved suppliers without written approval from Better Blend.

Better Blend retains sole discretion to approve or reject alternative suppliers, and may condition approval on evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. The criteria Better Blend uses for approving suppliers are not disclosed to franchisees. Better Blend will provide written notification of the approval or disapproval of any proposed supplier within 30 days after receiving the request. Better Blend may also grant approvals of new suppliers or revoke past approvals of suppliers by written notice or by updating the manual.

Better Blend estimates that the required purchases and leases to establish the business account for 70% to 90% of the total establishment costs. Similarly, ongoing operations also require 70% to 90% of purchases and leases to be from approved sources. Better Blend's affiliate, Better Blend Nutrition LLC, receives revenue from franchisee purchases of certain inventory items. In the prior fiscal year, this revenue amounted to $139,598.63. While Better Blend does not currently receive payments from designated suppliers, the franchise agreement does not prohibit them from doing so in the future.