Does Better Blend require franchisees to use an approved distributor?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Restaurant Equipment; Other Inventory and Supplies.
All of your kitchen equipment must meet our specifications and be purchased only from approved suppliers.
You must purchase our proprietary protein blend from our specified vendor.
All of your food, supplements, beverage, packaging, and other inventory purchases must meet our specifications and be purchased only from approved suppliers.
You must use a distributor that we approve.
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, franchisees are required to use a distributor that Better Blend approves. This requirement extends to food, supplements, beverage, packaging, and other inventory purchases, all of which must meet Better Blend's specifications and be purchased from approved suppliers. This means a franchisee cannot simply choose any distributor; they must select one that Better Blend has already vetted and approved.
Better Blend retains the sole discretion to approve or reject alternative suppliers, and the criteria for approval are not disclosed to franchisees. If a franchisee wishes to use a non-approved supplier, they must request written approval from Better Blend, which may be conditional on evaluations of the supplier's capacity, quality, financial stability, reputation, reliability, inspections, product testing, and performance reviews. Better Blend will provide written notification of approval or disapproval within 30 days of the request. Approvals can be granted or revoked with written notice or by updating the Brand Standards Manual.
Better Blend estimates that required purchases and leases account for 70% to 90% of the total purchases and leases necessary to both establish and operate the business. Better Blend's affiliate, Better Blend Nutrition LLC, serves as the sole supplier for mixes, to-go bags, BlendBox Pouches, and BlendBox Boxes. In the previous fiscal year, Better Blend Nutrition LLC's revenue from franchisee purchases totaled $139,598.63. While Better Blend does not currently receive payments from designated suppliers, the franchise agreement permits them to do so in the future without sharing these benefits with franchisees.
This system gives Better Blend significant control over the supply chain, ensuring consistency and quality across all franchise locations. However, it also limits the franchisee's autonomy and potentially their ability to negotiate better prices or terms with alternative suppliers. Prospective franchisees should carefully consider these restrictions and their potential impact on profitability and operational flexibility.