Under what condition will Better Blend charge a franchisee $500 for non-compliance?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $500 per instance | On demand | We may charge you $500 for any aspect | |
| of your business which is not in | |||
| compliance with our system specifications | |||
| or the franchise agreement and you fail to | |||
| correct the non-compliance after 30 days’ | |||
| notice. Thereafter, we may charge you | |||
| $250 per week until you correct such non- | |||
| compliance. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, a franchisee may be charged $500 for non-compliance. Specifically, Better Blend may charge a franchisee $500 per instance if any aspect of their business is not in compliance with the system specifications or the franchise agreement.
However, this fee is not immediately assessed. The franchisee will first receive a 30-day notice to correct the non-compliance. If the franchisee fails to correct the issue within this 30-day period, the $500 fee will be charged.
Furthermore, the non-compliance fees do not stop there. After the initial $500 charge, Better Blend may charge the franchisee an additional $250 per week until the non-compliance is corrected. This escalating fee structure is designed to incentivize franchisees to promptly address and resolve any issues of non-compliance to avoid accumulating significant charges.