Is Better Blend required to share any benefits of supplier payments with franchisees?
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 obligated to share any benefits from supplier payments with its franchisees. While Better Blend does not currently receive payments from designated suppliers, the franchise agreement permits them to do so in the future. Better Blend retains the right to profit from products supplied to franchisees or from arrangements with designated suppliers.
This policy means that Better Blend franchisees may not directly benefit from any rebates, discounts, or other financial incentives that Better Blend receives from its approved suppliers. Better Blend is also not required to provide an accounting of any payments they receive from these suppliers.
Prospective franchisees should be aware that Better Blend's ability to retain supplier payments could potentially influence their choice of suppliers or the terms negotiated with those suppliers. While this is not inherently negative, it's a factor to consider when evaluating the overall cost and potential profitability of a Better Blend franchise. It is common in the franchise industry for franchisors to receive some form of compensation from suppliers, but the transparency and sharing of these benefits can vary significantly.