To whom is the initial franchise fee paid for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISE AGREEMENT
| Type of expenditure | Amour | nt | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|---|
| Initial franchise fee (see Note 1) | $35,000 - | $35,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Rent (one month) (see | $2,000 - | $6,000 | Check | Upon signing lease | Landlord |
| Note 2) | |||||
| Lease Security Deposit (see Note 2) | $2,000 - |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the initial franchise fee, which ranges from $35,000 to $35,000, is paid to "Us", meaning Better Blend. This payment is due upon signing the franchise agreement and can be made via check or wire transfer.
For franchisees entering into a Multi-Unit Development Agreement (MUDA), additional initial franchise fees ranging from $27,500 to $47,500 are also paid to Better Blend. These fees are due upon signing the MUDA and can be paid via check or wire transfer. Note 4 in Item 7 specifies that the initial franchise fees are reduced to $30,000 for the second franchise, $25,000 for the third franchise, and $20,000 for the fourth and each additional franchise. Franchisees will pay 50% of the additional franchise fees upon signing the MUDA.
In summary, whether a franchisee is signing a single franchise agreement or a multi-unit development agreement, the initial franchise fees are remitted directly to Better Blend. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise rights and providing initial training and support.