What is the maximum monthly Technology Fee that Better Blend can charge?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
contribute to the Market Cooperative a percentage of Adjusted Gross Sales (or other amount) determined by the Market Cooperative, not to exceed 5%.
- 4.4 Technology Fee. BBF reserves the right to charge Franchisee a commercially-reasonable fee (the "Technology Fee") in exchange for software and other technology-related services and products provided by or through BBF. The Technology Fee does not have to be a pass-through of BBF's exact costs. BBF has no liability or obligation to Franchisee with respect any third-party software or other technology-related services and products that BBF provides to Franchisee. The Technology Fee for a given period is due and payable at the same time as the Royalty Fee, unless BBF determines otherwise. BBF may add, remove, or alter the software or technology products or services that it provides. BBF may change Technology
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend reserves the right to charge franchisees a Technology Fee in exchange for software and other technology-related services. This fee does not have to be a direct pass-through of Better Blend's exact costs. The Technology Fee is due at the same time as the Royalty Fee unless Better Blend determines otherwise. Better Blend may also add, remove, or alter the software or technology products or services provided.
Better Blend must provide at least 30 days' notice before changing the Technology Fee. The maximum Technology Fee that Better Blend can charge is $500 per month. However, Better Blend has the right to increase this limit to reflect inflation from January 1, 2022.
As a prospective franchisee, it's important to understand that while the Technology Fee is capped at $500 per month (plus potential inflation adjustments), Better Blend has the flexibility to modify the included software and services. Franchisees should inquire about the specific technologies covered by this fee and how these technologies contribute to the operation and profitability of the franchise.