What is the frequency of the Marketing Fund contribution payment for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 6 OTHER FEES*
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 6% of your adjusted | Weekly, on | See Notes 1, 2 and 3. | |
| gross sales | Tuesday | ||
| Currently, 1% of | Weekly, on | We reserve the right to increase the | |
| your adjusted gross | Tuesday | Marketing Fund Contribution to 2% of | |
| sales | your adjusted gross sales. | ||
| As determined by | We have the right to establish local or | ||
| the cooperative. | regional advertising cooperatives. If you | ||
| Currently, none. | are a member of a cooperative, you and | ||
| other members may vote to require each | |||
| member to contribute between 1% and 5% |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are required to make Marketing Fund contributions on a weekly basis. Specifically, the contribution is due every Tuesday. The standard contribution is currently 1% of the franchisee's adjusted gross sales, although Better Blend retains the right to increase this to 2%.
In addition to the standard marketing fund, Better Blend also reserves the right to establish local or regional advertising cooperatives. If a franchisee is a member of such a cooperative, they and other members may vote to require each member to contribute between 1% and 5% of adjusted gross sales to the cooperative. This cooperative contribution would be in addition to the standard marketing fund contribution paid to Better Blend.
It is important for prospective franchisees to understand that these marketing fund contributions are based on adjusted gross sales, which is defined in the franchise agreement. Franchisees must also report their adjusted gross sales to Better Blend each week. Failure to do so will result in Better Blend estimating the royalty fees and marketing fund contributions based on 125% of the most recent adjusted gross sales reported.