Is the Better Blend Technology Fee required to be a direct pass-through of BBF's exact costs?

According to Better Blend's 2024 Franchise Disclosure Document, the Technology Fee that Better Blend reserves the right to charge franchisees is not required to be a direct pass-through of the company's exact costs. This fee is in exchange for software and other technology-related services and products provided by or through Better Blend.

This means that Better Blend has the discretion to set the Technology Fee at a level that may or may not directly correspond to the actual expenses they incur in providing these technology services. The Technology Fee will not exceed $500 per month, although Better Blend may increase this limit to reflect inflation from January 1, 2022, after providing at least 30 days' notice.

As a prospective franchisee, it is important to understand that the Technology Fee can be a source of revenue for Better Blend and is not necessarily tied to the cost of the technology services provided. Franchisees should evaluate whether the value of the technology services justifies the fee, considering that Better Blend may add, remove, or alter the software or technology products or services that it provides.