For Better Blend franchises, what is the Marketing Fund used for?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
procedures for our system.
- F. Marketing Fund. We will administer the Marketing Fund (Section 5.3). We will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of our fiscal year and will provide the financial statement to you upon written request. (Section 9.3)
- G. Website. We will maintain a website for the Better Blend brand, which will include your business information. (Section 5.3)
Advertising
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce
advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which may be paid for by the Marketing Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you. We have the right to establish and control all social media accounts and other digital marketing. 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.
Advertising council.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–27)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Marketing Fund is used for marketing and related purposes and costs. Media coverage is primarily local, and Better Blend uses outside vendors and consultants to produce advertising. The brand also maintains a website, which may be paid for by the Marketing Fund.
The franchisee is required to contribute to the Marketing Fund, with a contribution of 1% of adjusted gross sales per week. Better Blend retains the right to increase this contribution to 2% of adjusted gross sales per week. However, Better Blend outlets are not obligated to contribute to the Marketing Fund.
Better Blend administers the Marketing Fund and will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of their fiscal year, providing it to franchisees upon written request. Funds that are not spent in the fiscal year will remain in the Marketing Fund for use in the subsequent year. No money from the Marketing Fund is spent principally to solicit new franchise sales.