Under what conditions is a Better Blend franchisee required to participate in advertising or promotional campaigns?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
r debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by BBF.
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by BBF, in the manner specified by BBF in the Manual or otherwise in writing. Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Better Blend business. If Franchisee honors a gift card or other pre-paid system sold by another location, or vice versa, BBF and Franchisee will cooperate so that the cash received is fairly allocated to the location where that gift card or other pre-paid system is redeemed (subject to fees and charges). Franchisee shall comply with all procedures and specifications of BBF related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
- 7.12 Maintenance, Repair, and Alterations. Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all of the property of the Business in good repair. In addition, Franchisee shall promptly perform all work on the physical property of the Business as BBF may prescribe from time to time, including but not limited to periodic interior and exterior painting; resurfacing of the parking lot; roof repairs; and replacement of obsolete or worn-out signage, floor coverings, furnishings, equipment and décor. If such work is reserved to Franchisee's landlord under the terms of Franchisee's lease, then Franchisee shall use reasonable efforts to cause its landlord to perform such work.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are generally required to participate in advertising and promotional campaigns. Specifically, Better Blend franchisees must participate in customer loyalty programs, membership/subscription programs, or customer incentive programs that Better Blend designates. This participation is at the franchisee's own expense and must be done in the manner specified by Better Blend in the manual or in writing.
Better Blend franchisees are also required to sell or issue gift cards, certificates, or other pre-paid systems as designated by Better Blend. Franchisees must honor all valid gift cards and other pre-paid systems, regardless of whether they were issued by the franchisee or another Better Blend business. Better Blend and the franchisee will cooperate to ensure that cash received is fairly allocated to the location where the gift card or pre-paid system is redeemed, subject to fees and charges.
Additionally, if a Market Cooperative is established, it will administer regional advertising and marketing programs and develop standardized promotional materials. However, no advertising or promotional plans or materials may be used by the Market Cooperative or furnished to its members without Better Blend's prior approval. Better Blend may also designate the national or regional advertising agencies used by the Market Cooperative. The Maryland Rider to the Franchise Agreement specifies that franchisees cannot be required to participate in advertising or promotional campaigns at an expense that is indeterminate, determined by a third party, or determined by a formula, unless the franchise agreement specifies the maximum percentage of gross monthly sales or the maximum absolute sum that the franchisee may be required to pay.