What is the frequency of the ongoing fee 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% | |||
| of adjusted gross sales to the cooperative. | |||
| We reserve the right to charge a | |||
| commercially reasonable fee for software | |||
| and other technology products and | |||
| services we provide. The technology fee | |||
| will not necessarily be a pass-through of | |||
| our exact costs. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the ongoing royalty fee, which is 6% of adjusted gross sales, is due weekly on Tuesday. The marketing fund contribution, currently at 1% of adjusted gross sales, is also due weekly on Tuesday.
Better Blend requires franchisees to report their adjusted gross sales each week. If a franchisee fails to report their adjusted gross sales, Better Blend will withdraw estimated royalty fees and marketing fund contributions based on 125% of the most recent adjusted gross sales reported. The actual fees will be reconciled after the franchisee reports their adjusted gross sales.
Better Blend currently requires royalty fees and other amounts due to be paid via preauthorized bank draft, but they can require an alternative payment method. If Better Blend permits payment by credit card or another method that causes them to incur a processing fee, the franchisee will be responsible for the amount of the processing fee. Franchisees should be aware of these payment terms and ensure they are prepared to meet the weekly payment schedule to avoid any penalties or additional fees.