What methods of payment are acceptable for the initial franchise fee for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISE AGREEMENT
| Type of expenditure | Amour | nt | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|---|
| Initial franchise fee (see Note 1) | $35,000 - | $35,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Rent (one month) (see | $2,000 - | $6,000 | Check | Upon signing lease | Landlord |
| Note 2) | |||||
| Lease Security Deposit (see Note 2) | $2,000 - |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the initial franchise fee, which ranges from $35,000 to $35,000, is payable by check or wire transfer. This payment is due upon signing the franchise agreement.
For those franchisees who sign a Multi-Unit Development Agreement (MUDA), the initial franchise fees are reduced for subsequent franchises. Specifically, the franchise fee is $30,000 for the second franchise, $25,000 for the third franchise, and $20,000 for the fourth and each additional franchise. When signing a MUDA, 50% of these additional franchise fees must be paid via check or wire transfer.
It is important to note that the initial franchise fee is non-refundable. Prospective franchisees should factor this into their financial planning and ensure they have the necessary funds available at the time of signing the franchise agreement or MUDA. Understanding the payment methods and due dates for these fees is a crucial step in the franchise acquisition process.