What pre-opening obligations does Better Blend have (Item 11), and what are the deadlines or conditions associated with these obligations based on the estimated initial investment timeline (Item 7)?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
Our Post-Opening Obligations
After you open your business:
- A. Developing products or services you will offer to your customers. Although it is our intent to refine and develop products or services that you will offer to your customers, the franchise agreement does not obligate us to do so.
- B. Hiring and training employees. All hiring decisions and conditions of employment are your sole responsibility. (Section 7.5)
- C. Improving and developing your business; resolving operating problems you encounter. If you request, we will provide advice to you (by telephone or electronic communication) regarding improving and developing your business, and resolving operating problems you encounter, to the extent we deem reasonable. If we provide in-person support in response to your request, we may charge a fee (currently $600 per day) plus any out-of-pocket expenses (such as travel, lodging, and meals for our employees providing onsite support). (Section 5.3)
- D. Establishing prices. Upon your request, we will provide recommended prices for products and services (Section 5.3). We have the right to determine prices charged by our franchisees for goods and services (but only to the extent permitted by applicable law) (Section 7.4).
- E. Establishing and using administrative, bookkeeping, accounting, and inventory control procedures. If you request, we will provide you our recommended procedures for administration, bookkeeping, accounting, and inventory control (Section 5.3). We may make any such procedures part of required (and not merely recommended) 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)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Item 11 outlines the franchisor's post-opening obligations to franchisees. These include developing products or services, though Better Blend is not obligated to do so, and providing advice on improving the business and resolving operational problems, potentially for a fee of $600 per day plus expenses for in-person support. Better Blend may also offer recommended prices for products and services and suggest procedures for administration, bookkeeping, accounting, and inventory control. They will administer the Marketing Fund and maintain a website for the Better Blend brand. These activities occur after the franchisee's business is open.
Item 7, which details the estimated initial investment, does not specify Better Blend's pre-opening obligations or associated deadlines. However, it does provide context for expenses a franchisee will incur before opening, such as lease and utility deposits, which are typically refundable, and inventory costs. The document notes that franchisees should negotiate a "free rent" period to offset build-out time. The initial investment table includes estimates for items like leasehold improvements, equipment, initial inventory, and additional funds for the first three months of operation.
While Item 7 provides a timeline of when certain pre-opening expenses will occur, it does not detail any specific obligations that Better Blend must fulfill before the franchisee opens. A prospective franchisee should ask Better Blend for a detailed list of pre-opening obligations and a timeline for fulfilling them to ensure a smooth and timely launch of their franchise.