What are the specific advertising and promotional activities that Better Blend franchisees are required to participate in (Item 9), and how do these activities relate to the franchisor's overall marketing strategy (Item 11)?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
se using or selling such item, and Franchisee shall at its own expense comply with all instructions from BBF or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
ARTICLE 9. MARKETING
- 9.1 Advertising Standards. Except as otherwise provided in the Manual, Franchisee may use only Advertising and Promotional Content that BBF has furnished or approved in writing in advance. Franchisee must ensure that all Advertising and Promotional Content that Franchisee uses is clear, factual, ethical, and not misleading; complies with all laws; and conforms to System Standards. Except as otherwise provided in the Manual and Advertising and Promotional Content that BBF furnishes to Franchisee, Franchisee must submit to BBF for its written approval, at least 14 days before use, copies of all proposed Advertising and Promotional Content that Franchisee intends to use or implement. If BBF does not respond, the material is deemed rejected. BBF has the right to approve or disapprove any Advertising and Promotional Content, as well as the media in which Franchisee intends to use them, in its sole discretion. BBF reserves the right to require Franchisee to discontinue the use of any Advertising and Promotional Content for any reason.
- 9.2 Digital Marketing. BBF may (but is not obligated to) establish and operate all Digital Marketing and has the sole right to control all aspects of Digital Marketing, including those related
to the Business. Without limiting the generality of Section 9.1, Franchisee shall not, directly or indirectly, conduct or be involved in any Digital Marketing without the prior written consent of BBF. If BBF permits Franchisee to conduct any Digital Marketing, Franchisee must (a) comply with any System Standards and must immediately modify or delete any Digital Marketing that BBF determines, in its sole discretion, is not compliant with such System Standards; (b) only use materials that BBF has approved and submit any proposed modifications to BBF for approval; (c) not use any Mark (or words or designations similar to any Mark) in any domain name, electronic address, website, or other source identifier except as BBF expressly permits; (d) include only the links that BBF approves or requires; and (e) immediately take all actions necessary or that BBF requests to provide BBF with access to, or to transfer ownership of, all Digital Marketing relating to the Business to Franchisor, including, without limitation, providing login and password details and promptly signing all directions and authorizations as BBF deems necessary to effect the intent and provisions of this Section. If Franchisee uses any Mark (or words or designations similar to a Mark) in any domain name, electronic address, website, or other source identifier, BBF may register such name, address, website, or identifier and then license use of the registered item back to Franchisee under a separate agreement. Franchisee must pay all costs due for registration, maintenance, and renewal of any such names, addresses, websites, or identifiers that BBF approves and maintains on Franchisee's behalf. BBF may withdraw its approval for any Digital Marketing at any time.
- 9.3 Implementation. Franchisee shall implement any advertising or marketing materials, plans or campaigns (including Digital Marketing) required by BBF.
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are required to adhere to specific advertising standards and may be required to participate in local or regional advertising cooperatives, as well as contribute to the Marketing Fund. Franchisees must use only advertising and promotional content that Better Blend has furnished or approved in writing and ensure that all advertising is clear, factual, ethical, and compliant with all laws. Franchisees must submit any proposed advertising content to Better Blend for approval at least 14 days before use, and Better Blend reserves the right to approve or disapprove any advertising content. Better Blend also has the sole right to control all aspects of digital marketing.
Better Blend may require franchisees to participate in local or regional advertising cooperatives, where the contribution is determined by the members but must be between 1% and 5% of adjusted gross sales. Better Blend also mandates that franchisees contribute to a Marketing Fund, which is currently set at 1% of adjusted gross sales per week, with the potential to increase to 2%. These funds are used for marketing and related purposes, and Better Blend maintains a website for the brand that includes the franchisee's business information. However, Better Blend did not spend any money from the Marketing Fund in its most recently concluded fiscal year.
The franchisor's overall marketing strategy involves a combination of centralized control and local participation. Better Blend maintains control over digital marketing and brand standards, ensuring consistency across all locations. The Marketing Fund allows for broader marketing initiatives, while the potential for local advertising cooperatives enables franchisees to address specific regional market needs. This approach allows Better Blend to maintain a unified brand image while also providing franchisees with some flexibility to tailor their marketing efforts to their local market conditions.
Prospective franchisees should note that Better Blend has significant control over advertising and promotional content, and they must adhere to the franchisor's standards and obtain approval for their own marketing materials. Additionally, the contribution to the Marketing Fund and potential participation in local advertising cooperatives represent ongoing financial obligations. Franchisees should inquire about the specific plans for the Marketing Fund and the likelihood of local advertising cooperatives being formed in their area to fully understand their marketing responsibilities and costs.