What are the ongoing responsibilities of a Better Blend franchisee related to maintaining the brand's image (Item 9), and how do these responsibilities relate to the franchisor's advertising efforts (Item 11)?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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. You must ensure that all advertising or marketing materials that you use are clear, factual, ethical, and not misleading; comply with our brand standards; and comply with all laws.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative. We will define the area of the cooperative based on media markets, or other geographic criteria that we deem appropriate. Each franchisee in the area would have one vote per outlet (unless the franchisee is in default under its franchise agreement). The amount you must contribute to the cooperative will be determined by vote of the members, but not less than 1% and not more than 5% of adjusted gross sales. If our own outlets are members of a cooperative, they must contribute to the cooperative on the same basis as franchisees, and they will vote on the same basis as other members. We administer the cooperative, but we have the right to delegate responsibility for administration to an outside company such as an advertising agency or accounting firm, or to the franchisee members of the cooperative. We have the right to require the cooperative to operate from written bylaws or other governing docum
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees have several responsibilities related to maintaining the brand's image, particularly concerning advertising and marketing materials. Better Blend franchisees must obtain approval from the franchisor before using any of their own advertising or marketing materials. To get approval, franchisees must submit the materials at least 14 days before they plan to use them. If Better Blend does not respond within that timeframe, the material is considered rejected. Better Blend also retains the right to use any advertising or marketing materials developed by a franchisee for any purpose without compensating the franchisee. Furthermore, Better Blend maintains control over all social media accounts and other digital marketing efforts. Franchisees must ensure that all advertising and marketing materials they use are clear, factual, ethical, not misleading, compliant with Better Blend's brand standards, and compliant with all applicable laws.
Better Blend manages a Marketing Fund, using it exclusively for marketing and related costs. While media coverage is primarily local, Better Blend is not obligated to spend any specific amount on advertising in the area or territory where a particular franchisee is located. Better Blend also maintains the brand's website, potentially funded by the Marketing Fund, but has no other mandatory advertising obligations.
Better Blend does not currently have an advertising council composed of franchisees, and the franchise agreement does not grant Better Blend the power to form one. However, Better Blend has the right to require franchisees to participate in local or regional advertising cooperatives. The contribution amount to such cooperatives will be determined by the members' vote, but it will be between 1% and 5% of adjusted gross sales. If Better Blend's own outlets are part of a cooperative, they must contribute and vote on the same basis as the franchisees. Better Blend can administer the cooperative or delegate this responsibility to an outside company or the franchisee members. The cooperative may be required to operate under written bylaws or other governing documents.