How often must a Better Blend franchisee report adjusted gross sales?

According to Better Blend's 2024 Franchise Disclosure Document, franchisees are required to report their adjusted gross sales on a weekly basis. Specifically, these reports are due each Tuesday. Adjusted Gross Sales is defined as the total dollar amount of all sales generated through your business for a given period, including payments for services or products sold, whether for cash or credit, and any proceeds from business interruption insurance. However, it does not include coupons, discounts, refunds, sales taxes collected, or sales of prepaid cards (though redemption of such cards is included).

This weekly reporting requirement is crucial because Better Blend uses the adjusted gross sales figure to calculate royalty fees and marketing fund contributions. The royalty fee is 6% of your adjusted gross sales, and the marketing fund contribution is currently 1% of your adjusted gross sales, both payable weekly. If a franchisee fails to report their adjusted gross sales on time, Better Blend will estimate the royalty fees and marketing fund contributions based on 125% of the most recent adjusted gross sales reported.

Better Blend will then reconcile the actual fees once the franchisee submits the required sales report. This policy incentivizes timely reporting to avoid overestimation of fees. Furthermore, Better Blend currently requires these payments to be made via preauthorized bank draft, although they reserve the right to require alternative payment methods, potentially incurring processing fees for the franchisee.