Are Better Blend franchisees required to use an approved distributor for their purchases?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
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 are required to use approved distributors for certain purchases. Specifically, franchisees must use a distributor that Better Blend approves for food, supplements, beverage, packaging, and other inventory purchases that meet Better Blend's specifications.
Better Blend retains significant control over the supply chain. Franchisees are obligated to purchase point-of-sale systems that Better Blend specifies. Certain inventory items, including mixes, to-go bags, BlendBox Pouches, and BlendBox Boxes, must be purchased from Better Blend Nutrition LLC, an affiliate of the franchisor, which is currently the sole supplier of these items. All kitchen equipment must meet Better Blend's specifications and be purchased only from approved suppliers. The proprietary protein blend must be purchased from Better Blend's specified vendor.
If a franchisee wishes to use a supplier not already approved, they must request written approval from Better Blend, which has sole discretion to approve or reject the alternative supplier. Approval may be conditional based on evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability, as well as inspections, product testing, and performance reviews. Better Blend will provide written notification of approval or disapproval within 30 days of the request. Better Blend estimates that required purchases and leases account for 70% to 90% of the total purchases and leases to establish and operate the business.
Better Blend's affiliate, Better Blend Nutrition LLC, received $139,598.63 from franchisee purchases in the prior fiscal year. While Better Blend does not currently receive payments from designated suppliers, the franchise agreement does not prohibit them from doing so in the future. They have the right to profit from any product they supply or from designated suppliers without sharing these benefits with franchisees.