Can Better Blend negotiate system-wide agreements with third-party delivery services?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) Delivery Services. Franchisee shall use such third-party delivery services as BBF may require or approve, and only such third-party delivery services. BBF reserves the right to negotiate system-wide agreements with third-party delivery services, and Franchisee shall comply with any such agreement. BBF reserves the right to set boundaries for delivery, which need not be the same as the Territory. Adjusted Gross Sales on deliveries will be calculated on the amount paid by the customer to the delivery service (not counting any fees charged by the delivery service to the customer in addition to Better Blend prices, such as a delivery fee, service charge, or gratuity charged by the delivery service to the customer), rather than the net amount received by Franchisee from the delivery service.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend retains the right to negotiate system-wide agreements with third-party delivery services. As a franchisee, you are obligated to use the third-party delivery services that Better Blend requires or approves.
This means that Better Blend can establish partnerships with delivery companies like Uber Eats, DoorDash, or Grubhub on behalf of all its franchisees. If Better Blend secures a system-wide agreement, franchisees must comply with the terms of that agreement.
Furthermore, Better Blend has the right to set delivery boundaries, which may differ from the franchisee's territory. The FDD also clarifies how adjusted gross sales are calculated for deliveries, specifying that it is based on the amount paid by the customer to the delivery service, excluding any fees charged by the delivery service itself.