What are Better Blend's marketing fund fees used for?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Royalties are collected on a weekly basis and are based on certain percentage as specified on the franchise agreement. Marketing fees are based on up to 1% of gross revenue. The marketing fund is used for marketing expenses related to maximizing public recognition of the Company's brand and marketing fund.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the marketing fees, which are up to 1% of gross revenue, are allocated to the marketing fund. This fund is specifically designated for marketing expenses. These expenses are intended to enhance public recognition of the Better Blend brand and the marketing fund itself.
For a prospective franchisee, this means that up to 1% of their gross revenue will be contributed to a marketing fund. This fund is then used to promote the Better Blend brand, which should, in theory, benefit all franchisees by increasing brand awareness and attracting more customers.
It is important for potential franchisees to understand how these marketing funds are managed and what specific marketing activities are being funded. Transparency in the use of these funds is crucial, as franchisees will want to ensure their contributions are being used effectively to support the growth and recognition of the Better Blend brand.