When is the Royalty Fee due for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.2 Royalty Fee. Franchisee shall pay BBF a weekly royalty fee (the "Royalty Fee") equal to 6% of Adjusted Gross Sales. The Royalty Fee for any given week is due on the first Tuesday of the following week.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Royalty Fee is due weekly. Specifically, the Royalty Fee, which is 6% of Adjusted Gross Sales, must be paid to Better Blend on the first Tuesday of the following week.
This means that a Better Blend franchisee must calculate their Adjusted Gross Sales each week and remit 6% of that amount to the franchisor the following Tuesday. This ongoing payment is for the continued use of the Better Blend System and brand name.
In addition to the Royalty Fee, Better Blend franchisees also pay a Marketing Fund Contribution, and potentially a Technology Fee, at the same time as the Royalty Fee. Therefore, franchisees must ensure they have systems in place to accurately track sales and calculate these fees on a weekly basis to avoid late payment penalties or other issues with Better Blend.