factual

What is the standard payment method for royalty fees and other amounts due to Better Blend?

Better_Blend Franchise · 2024 FDD

Answer from 2024 FDD Document

  1. We currently require you to pay royalty fees and other amounts due to us by preauthorized bank draft. However, we can require an alternative payment method. If we permit you to pay by credit card or any other method which causes us to incur a processing fee, you will be responsible for the amount of the processing fee.

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2024 FDD)

According to Better Blend's 2024 Franchise Disclosure Document, the standard payment method for royalty fees and other amounts due is preauthorized bank draft. However, Better Blend retains the right to require an alternative payment method.

If Better Blend permits a franchisee to pay by credit card or any other method that causes Better Blend to incur a processing fee, the franchisee will be responsible for the amount of that processing fee. This means that while preauthorized bank drafts are the standard, franchisees might have the option to use other payment methods, but they would need to cover any associated costs.

Additionally, if a Better Blend franchisee fails to report their adjusted gross sales each week, Better Blend will withdraw estimated royalty fees and marketing fund contributions based on 125% of the most recent adjusted gross sales reported. Better Blend will then reconcile the actual fees after the franchisee reports their adjusted gross sales. This highlights the importance of timely and accurate reporting of sales to avoid potentially inflated fee withdrawals.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.