Is Better Blend prohibited from receiving payments from designated suppliers in the future?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not currently receive payments from any designated suppliers based on purchases by you or other franchisees. However, the franchise agreement does not prohibit us from doing so. We have the right to earn a profit from any product we supply or from designated suppliers. We are not required to give you an accounting of any payments we receive from designated suppliers, nor are we required to share any benefits of supplier payments with you or with any other franchisee.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend is not prohibited from receiving payments from designated suppliers in the future. While Better Blend does not currently receive payments from designated suppliers, the franchise agreement does not prohibit them from doing so. Better Blend retains the right to profit from products supplied or from designated suppliers.
Better Blend is also not required to provide franchisees with an accounting of any payments received from designated suppliers, nor are they required to share any benefits of supplier payments with franchisees. This means that Better Blend could potentially receive financial benefits from suppliers based on franchisee purchases without having to disclose those benefits or share them with the franchisees.
This arrangement is fairly common in franchising, where franchisors often negotiate deals with suppliers. However, the lack of transparency regarding these payments could be a concern for some franchisees. Prospective franchisees should inquire about Better Blend's policies regarding supplier payments and how these arrangements might affect the cost of goods and services.