What section of the Better Blend Franchise Agreement discusses advertising obligations?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in agreement | Disclosure document item | |
|---|---|---|---|
| o. Advertising | Article 9 | Items 6, 7, 8 and 11 |
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, the franchisee's obligations regarding advertising are found in Article 9 of the franchise agreement. This information is located in Item 11, which generally discusses the franchisor's assistance, advertising, computer systems, and training provided to franchisees. Item 11 references Articles 6, 7, 8, and 11 in relation to advertising.
Specifically, Item 11 outlines Better Blend's obligations related to advertising, including the use of the Marketing Fund for marketing purposes. It states that Better Blend is not required to spend any specific amount on advertising in any particular franchisee's area. Franchisees are allowed to use their own advertising materials, but only with Better Blend's prior approval, which must be requested at least 14 days before use.
Item 11 also mentions the possibility of local or regional advertising cooperatives, which Better Blend has the right to require franchisees to participate in. The contribution to such cooperatives would be determined by the members, set between 1% and 5% of adjusted gross sales. Better Blend also administers the Marketing Fund, to which franchisees must contribute 1% of adjusted gross sales per week, with the right for Better Blend to raise this to 2%.
Finally, franchisees are required to spend at least 2% of adjusted gross sales each month on marketing their Better Blend business after opening, although Better Blend does not guarantee that this minimum is the optimal amount.