For Better Blend, what is included in 'Labor' costs?

According to Better Blend's 2024 Franchise Disclosure Document, 'Labor' costs, as presented in the Item 19 financial performance representation, specifically refer to store employee compensation. This definition is important for prospective franchisees to understand because it clarifies what expenses are included under this line item when evaluating the financial performance of company-owned locations.

Notably, the 'Labor' costs exclude compensation for the owners and the district manager. This means that a franchisee who actively manages their Better Blend location will not have their salary or wages reflected in the 'Labor' cost figure. This distinction is crucial for franchisees to accurately project their potential profitability, as they will need to factor in their own compensation separately.

Understanding the components of 'Labor' costs allows potential Better Blend franchisees to better compare their potential expenses with the historical performance data provided. By excluding owner and district manager compensation, the franchisor provides a standardized metric that focuses solely on employee wages, making it easier to benchmark and forecast labor-related expenses for a new franchise location.