Is the Better Blend Technology Fee due at the same time as the Royalty Fee?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
. BBF has no liability or obligation to Franchisee with respect any third-party software or other technology-related services and products that BBF provides to Franchisee. The Technology Fee for a given period is due and payable at the same time as the Royalty Fee, unless BBF determines otherwise. BBF may add, remove, or alter the software or technology products or services that it provides. BBF may change Technology Fee after at least 30 days' notice. The Technology Fee will not exceed $500 per month (provided that BBF may increase this limit to reflect inflation from January 1, 2022).
- 4.5 Replacement / Additional Training Fee. If Franchisee sends an employee to BBF's training program after opening, BBF may charge its then-current training fee. As of the date of this Agreement, the training fee is $250 per person per day.
- 4.6 Non-Compliance Fee. BBF may charge Franchisee $500 for each instance of noncompliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to BBF) which Franchisee fails to cure after 30 days' notice. Thereafter, BBF may charge Franchisee $250 per week until Franchisee ceases such non-compliance.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Technology Fee is generally due at the same time as the Royalty Fee. The Royalty Fee is paid weekly and is equal to 6% of Adjusted Gross Sales. The Royalty Fee for any given week is due on the first Tuesday of the following week.
However, Better Blend retains the right to determine an alternative due date for the Technology Fee. Better Blend also reserves the right to modify the Technology Fee after providing at least 30 days' notice to the franchisee. The Technology Fee will not exceed $500 per month, although Better Blend can increase this limit to account for inflation from January 1, 2022.
Prospective franchisees should note that Better Blend can modify the software or technology products and services provided and that Better Blend has no liability regarding third-party software. Franchisees must also pay the Royalty Fee, Marketing Fund Contribution, and Technology Fee via pre-authorized bank draft or another method required by Better Blend.