Can Better Blend specify minimum inventory levels as a System Standard?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
7.3 Food Service.
- (a) Menu. Franchisee shall offer all menu items, beverages, and other products and services, and only those menu items, beverages, and other products and services, from time to time prescribed by BBF in the Manual or otherwise in writing.
- (b) Preparation. Franchisee shall follow all recipes prescribed by BBF, including, without limitation, use of all ingredients specified or authorized by BBF, and only such ingredients. Franchisee shall prepare and serve all food products in a high-quality manner that meets or exceeds the customer's reasonable expectations and all applicable System Standards.
- (c) Inventory. Franchisee shall maintain sufficient levels of inventory at all times. BBF has the right to specify minimum levels of inventory as a System Standard.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend has the right to specify minimum inventory levels as a System Standard. The franchise agreement states that franchisees must maintain sufficient inventory levels at all times. This means Better Blend can dictate the minimum amount of ingredients and products a franchisee must have on hand to operate their business.
For a prospective franchisee, this implies that Better Blend has control over inventory management. Franchisees must be prepared to comply with these standards, which could affect their operational costs and storage requirements. Failing to maintain the required inventory levels could lead to operational inefficiencies or potential penalties from the franchisor.
System Standards are defined in the FDD as the mandatory procedures, requirements, and/or standards of the Better Blend system as determined by Better Blend. These standards can include requirements for appearance, business metrics, cleanliness, customer service, data protection and privacy, design, equipment, inventory, maintenance, marketing and public relations, and more.