Is the maximum technology fee for Better Blend subject to inflation adjustment?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| We reserve the right to charge a | |||
| commercially reasonable fee for software | |||
| and other technology products and | |||
| services we provide. The technology fee | |||
| will not necessarily be a pass-through of | |||
| our exact costs. We may add, remove, or | |||
| alter the software or technology products | |||
| or services that we provide. The | |||
| technology fee will not exceed $500 per | |||
| month (subject to inflation adjustment). |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the maximum technology fee is subject to inflation adjustment. Better Blend reserves the right to charge a commercially reasonable fee for software and other technology products and services they provide to franchisees. This fee is not necessarily a pass-through of Better Blend's exact costs, and they may add, remove, or alter the software or technology products or services.
The technology fee will not exceed $500 per month. However, this maximum amount is subject to adjustment based on inflation. This means that the $500 cap could increase over time, depending on changes in recognized inflation indices.
As a prospective franchisee, it is important to understand how Better Blend calculates and adjusts this technology fee. You should ask Better Blend for details on the specific index they use to measure inflation and how frequently they adjust the fee. This will help you budget accurately for ongoing technology costs.