Is Better Blend obligated to have all other Better Blend businesses contribute to the Marketing Fund?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
BBF is not obligated to (i) have all other Better Blend businesses (whether owned by other franchisees or by BBF or its affiliates) contribute to the Marketing Fund, or (ii) have other Better Blend businesses that do contribute to the Marketing Fund contribute the same amount or at the same rate as Franchisee.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend is not required to ensure that all Better Blend businesses contribute to the Marketing Fund. This means that some corporate-owned or franchised locations may not be contributing to the fund. Additionally, Better Blend is not obligated to ensure that all Better Blend businesses that do contribute to the Marketing Fund contribute the same amount or at the same rate as the franchisee. This creates a situation where different locations may be contributing different amounts to the fund.
This policy could impact a franchisee because the amount of funds available for marketing efforts may fluctuate depending on the participation of other Better Blend businesses. If a significant number of locations opt out of contributing, or contribute at a lower rate, the overall marketing budget could be reduced, potentially affecting the reach and effectiveness of marketing campaigns. This could put a greater onus on individual franchisees to conduct their own local marketing efforts to compensate.
While Better Blend has the discretion to manage the Marketing Fund, this lack of obligation regarding contributions from all locations could lead to disparities in marketing support across different regions or markets. A prospective franchisee should inquire about the historical participation rates of other Better Blend businesses in the Marketing Fund and the criteria Better Blend uses to determine contribution amounts to better understand the potential impact on their franchise.