Is Better Blend required to spend any amount on advertising in the area where a particular franchisee is located?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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, Better Blend is not required to spend any specific amount on advertising in the area or territory where a particular franchisee's location is. However, franchisees are required to contribute to the Marketing Fund, with contributions set at 1% of adjusted gross sales per week, and Better Blend retains the right to increase this to 2%.
Better Blend maintains control over the Marketing Fund and is responsible for its administration. While the funds are intended for marketing and related costs, Better Blend-owned outlets are not obligated to contribute to the Marketing Fund. The FDD states that media coverage is primarily local. Franchisees must also spend a minimum of 2% of adjusted gross sales each month on local marketing efforts after opening their Better Blend business.
Better Blend does not have an advertising council composed of franchisees, and the franchise agreement does not grant Better Blend the power to form one. Better Blend does, however, have the right to require franchisees to participate in local or regional advertising cooperatives. If Better Blend requires participation in a cooperative, the amount franchisees must contribute will be determined by a vote of the members, but it will not be less than 1% and not more than 5% of adjusted gross sales.