How long does a Better Blend franchisee have to reimburse BBF for payments made on their behalf?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.7 Reimbursement. BBF may (but is never obligated to) pay on Franchisee's behalf any amount that Franchisee owes to a supplier or other third party.
If BBF does so or intends to do so, Franchisee shall pay such amount plus a 10% administrative charge to BBF within 15 days after invoice by BBF accompanied by reasonable documentation.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if Better Blend pays an amount that a franchisee owes to a supplier or other third party, the franchisee must repay that amount plus a 10% administrative charge within 15 days of receiving an invoice from Better Blend. The invoice will include reasonable documentation of the payment made on the franchisee's behalf.
This means that if a Better Blend franchisee is unable to pay a supplier on time, Better Blend has the option, but not the obligation, to step in and make the payment. This could be beneficial for the franchisee in maintaining good relationships with suppliers and avoiding disruptions to their business operations. However, the franchisee will then be indebted to Better Blend for the amount paid plus an additional 10%.
It is important for prospective Better Blend franchisees to understand that this reimbursement policy exists and to factor it into their financial planning. Franchisees should ensure they have sufficient cash flow to cover potential reimbursements to Better Blend within the 15-day timeframe to avoid any further financial repercussions or potential breaches of the franchise agreement.