Who manages the Marketing Fund for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
The Marketing Fund will be spent at BBF's sole discretion, and BBF has no fiduciary duty with regard to the Marketing Fund.
- (d) Contribution by Other Outlets.
BBF is not obligated to (i) have all other Better Blend businesses (whether owned by other franchisees or by BBF or its affiliates) contribute to the Marketing Fund, or (ii) have other Better Blend businesses that do contribute to the Marketing Fund contribute the same amount or at the same rate as Franchisee.
- (e) Surplus or Deficit.
BBF may accumulate funds in the Marketing Fund and carry the balance over to subsequent years.
If the Marketing Fund operates at a deficit or requires additional funds at any time, BBF may loan such funds to the Marketing Fund on reasonable terms.
- (f) Financial Statement.
BBF shall prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of BBF's fiscal year and shall provide the financial statement to Franchisee upon written request.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend Franchising, LLC ("BBF") manages the Marketing Fund. The FDD specifies that the Marketing Fund will be spent at BBF's sole discretion. This means that Better Blend has the authority to decide how the funds are used to promote the Better Blend system.
Better Blend is not obligated to ensure that all Better Blend businesses contribute to the Marketing Fund, nor are they required to ensure that those who do contribute, do so at the same rate as the franchisee. This gives Better Blend flexibility in managing contributions to the fund.
Better Blend may accumulate funds in the Marketing Fund, carrying over any balance to subsequent years. If the Marketing Fund operates at a deficit or requires additional funds, BBF may loan funds to the Marketing Fund on reasonable terms. This provides financial flexibility for the Marketing Fund.
Within 120 days of the close of Better Blend's fiscal year, BBF will prepare an unaudited annual financial statement of the Marketing Fund and provide it to the franchisee upon written request. This ensures transparency, allowing franchisees to review the fund's financial activities, although the statement is unaudited, meaning its accuracy has not been verified by an independent accountant.