What is the purpose of the Better Blend Marketing Fund?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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. 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.
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, the Marketing Fund is used for marketing and related purposes and costs. Better Blend franchisees are required to contribute 1% of their adjusted gross sales per week to the Marketing Fund, though Better Blend retains the right to increase this contribution to 2%. It is important to note that Better Blend's own outlets are not obligated to contribute to the Marketing Fund.
Better Blend administers the Marketing Fund and will provide unaudited annual financial statements to franchisees upon request. Funds that are not spent in a given fiscal year will remain in the Marketing Fund for use in subsequent years. However, the FDD states that no money from the Marketing Fund is spent principally to solicit new franchise sales.
Unlike some franchise systems, Better Blend does not have an advertising council composed of franchisees. Better Blend also has the right to require franchisees to participate in a local or regional advertising cooperative, where contributions can range from 1% to 5% of adjusted gross sales, as determined by the members. Better Blend has the power to require these cooperatives to be formed, changed, dissolved, or merged.