What is Better Blend's role in administering the Marketing Fund?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ded) 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.
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives.
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 administers the Marketing Fund. Franchisees are required to contribute 1% of their adjusted gross sales weekly to the Marketing Fund, and Better Blend has the right to increase this contribution to 2%. However, Better Blend-owned outlets are not obligated to contribute to the Marketing Fund. Better Blend also reserves the right to have other franchisees contribute a different amount or at a different rate.
Better Blend states that it will use the Marketing Fund solely for marketing and related costs. The company utilizes outside vendors and consultants for advertising production, with media coverage being primarily local. Although franchisees contribute to the fund, Better Blend is not required to spend any specific amount on advertising in the area or territory where any particular franchisee is located.
Better Blend will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of their fiscal year and provide it to franchisees upon written request. The FDD states that Better Blend did not spend any money from the Marketing Fund in its most recently concluded fiscal year. If the entire Marketing Fund is not spent during a fiscal year, the remaining funds will be carried over to the next year. No money from the Marketing Fund is used to solicit new franchise sales.