factual

Can Better Blend use the internet to make sales within a franchisee's territory?

Better_Blend Franchise · 2024 FDD

Answer from 2024 FDD Document

There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.

Source: Item 12 — TERRITORY (FDD pages 27–29)

What This Means (2024 FDD)

According to Better Blend's 2024 Franchise Disclosure Document, Better Blend retains the right to use the internet and other channels to make sales within a franchisee's territory. Specifically, there are no restrictions preventing Better Blend from soliciting or accepting orders from consumers within a franchisee's designated area.

Better Blend explicitly reserves the right to use various distribution channels, including the internet, catalog sales, telemarketing, and other direct marketing methods, to generate sales within a franchisee's territory. These sales can be made using Better Blend's principal trademarks or even different trademarks than those used by the franchisee. Importantly, Better Blend is not obligated to provide any compensation to the franchisee for sales solicited or accepted from within their territory through these alternative channels.

This arrangement means that a Better Blend franchisee could face competition from the franchisor's online sales efforts within their own territory, potentially impacting their revenue. While the franchisee is permitted to engage in marketing and advertising, including online marketing, subject to Better Blend's approval, they will not receive any financial benefit from online sales made directly by Better Blend in their territory. This is a fairly common practice in franchising, where franchisors often maintain control over online sales and distribution, but it's crucial for prospective franchisees to understand this dynamic and its potential impact on their business.

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.