For what purposes shall Better Blend use the Marketing Fund?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
s, plans or campaigns (including Digital Marketing) required by BBF.
- 9.4 Use by BBF. BBF may use any Advertising and Promotional Content developed by or on behalf of Franchisee, and Franchisee hereby grants an unlimited, perpetual, royalty-free license to BBF for such purpose.
- 9.5 Marketing Fund. BBF has established or may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level. If BBF has established a Marketing Fund:
- (a) Account. BBF is not required to hold the Marketing Fund Contributions in a bank account separate from BBF's other accounts.
- (b) Use. BBF shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level) for Better Blend, and related overhead. The foregoing includes such activities and expenses as BBF reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of BBF's employees working on marketing and for accounting, bookkeeping, reporting, legal, collections, and other expenses related to the Marketing Fund).
- (c) Discretion.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Marketing Fund will be used for marketing, advertising, and public relations efforts to promote the Better Blend system at the local, regional, national, and/or international level. This includes the development and placement of advertising and promotions, sponsorships, contests and sweepstakes, and the development of décor, trade dress, Marks, and/or branding.
Better Blend will also use the Marketing Fund for the development and maintenance of brand websites, social media, internet activities, e-commerce programs, and search engine optimization. Additional uses include public relations, media or agency costs, trade shows and other events, printing and mailing, and administrative and overhead expenses related to the Marketing Fund. These expenses may include compensation for Better Blend's employees working on marketing and for accounting, bookkeeping, reporting, legal, collections, and other expenses related to the Marketing Fund.
Better Blend retains sole discretion over how the Marketing Fund is spent, and these expenditures do not need to be proportionate to a franchisee's contributions or provide any direct or indirect benefit to the franchisee. Better Blend is not required to hold Marketing Fund contributions in a separate bank account from its other accounts. This means that while franchisees contribute to the Marketing Fund, Better Blend has significant control over its use and is not obligated to ensure direct benefits to each specific franchise location.