Is the initial franchise fee for a Better Blend franchise refundable?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Fee
When you sign your franchise agreement, you must pay us $35,000 as the initial franchise fee. This fee is uniform and is not refundable.
Certain Inventory Items
Our affiliate Better Blend Nutrition LLC will sell certain inventory to you. Currently, it is sole supplier of your mixes, to-go bags, BlendBox Pouches, and BlendBox Boxes. You will spend approximately $4,000 to $7,000 on these items before you open. You will pay upon ordering. It is not refundable.
Multi-Unit Development
If you and we agree that you will develop three or more franchises, then you will sign our Multi-Unit Development Agreement ("MUDA") in the form of Exhibit C to this disclosure document.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the initial franchise fee is not refundable. The standard initial franchise fee is $35,000, which must be paid when signing the franchise agreement.
For franchisees pursuing a multi-unit development agreement, the initial franchise fee is reduced for each additional outlet. The fee is $30,000 for the second outlet, $25,000 for the third, and $20,000 for the fourth and each subsequent outlet. When signing the Multi-Unit Development Agreement (MUDA), the franchisee pays 50% of these franchise fees, with the balance due upon signing a letter of intent to lease each additional location. These fees are also non-refundable.
Prospective Better Blend franchisees should be aware that the initial franchise fee is a sunk cost. This means that regardless of whether the business succeeds or fails, or if the franchisee decides not to open, the initial franchise fee will not be returned. This is a common practice in franchising, as the fee covers Better Blend's initial costs of granting the franchise, including training, support, and access to the Better Blend system and brand.