What is Better Blend's obligation regarding the Marketing Fund after a franchise opens?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ded) procedures for our system.
- F. Marketing Fund. We will administer the Marketing Fund (Section 5.3). We will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of our fiscal year and will provide the financial statement to you upon written request. (Section 9.3)
- G. Website. We will maintain a website for the Better Blend brand, which will include your business information. (Section 5.3)
Advertising
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce
advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which may be paid for by the Marketing Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you. We have the right to establish and control all social media accounts and other digital marketing.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–27)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend will administer the Marketing Fund. Better Blend will also prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of their fiscal year and will provide the financial statement to franchisees upon written request.
Better Blend is obligated to use the Marketing Fund only for marketing and related purposes and costs. If the entire marketing fund is not spent during the fiscal year, the remaining funds will be allocated to the Marketing Fund for use in the subsequent year. Better Blend states that no money from the Marketing Fund is spent principally to solicit new franchise sales.
Franchisees are required to contribute 1% of adjusted gross sales per week to the Marketing Fund, although Better Blend retains the right to increase this contribution to 2%. It's important to note that Better Blend has the right to have other franchisees contribute a different amount or at a different rate. Company-owned outlets are not required to contribute to the Marketing Fund. Franchisees must also spend at least 2% of adjusted gross sales each month on local marketing for their business.