When is the weekly royalty fee due for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
eement, Franchisee shall pay an initial franchise fee in the amount stated on the Summary Page. This initial franchise fee is not refundable under any circumstances.
- 4.2 Royalty Fee. Franchisee shall pay BBF a weekly royalty fee (the "Royalty Fee") equal to 6% of Adjusted Gross Sales. The Royalty Fee for any given week is due on the first Tuesday of the following week.
4.3 Marketing Contributions.
(a) Marketing Fund Contribution. Franchisee shall pay BBF a contribution to the Marketing Fund (the "Marketing Fund Contribution") equal to 1% of Franchisee's Adjusted Gross Sales (or such lesser amount as BBF determines), at the same time as the Royalty Fee. BBF reserves the right to raise the Marketing Fund Contribution to 2% of Adjusted Gross Sales, after at least 30 days prior notice.
- (b) Market Cooperative Contribution. If the Business participates in a Market Cooperative, then Franchisee shall contribute to the Market Cooperative a percentage of Adjusted Gross Sales (or other amount) determined by the Market Cooperative, not to exceed 5%.
- 4.4 Technology Fee. BBF reserves the right to charge Franchisee a commercially-reasonable fee (the "Technology Fee") in exchange for software and other technology-related services and products provided by or through BBF. The Technology Fee does not have to be a pass-through of BBF's exact costs.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the weekly royalty fee is due on the first Tuesday of the following week. The royalty fee is 6% of Adjusted Gross Sales. Franchisees must also pay a marketing fund contribution equal to 1% of Adjusted Gross Sales (or a lesser amount determined by Better Blend), at the same time as the royalty fee.
Better Blend also reserves the right to charge a Technology Fee for software and other technology-related services. This fee is due at the same time as the royalty fee, unless Better Blend determines otherwise.
Franchisees must report their weekly Adjusted Gross Sales to Better Blend by Tuesday of the following week. If a franchisee fails to report their Adjusted Gross Sales on time, Better Blend may withdraw estimated royalty fees and marketing fund contributions equal to 125% of the last Adjusted Gross Sales reported. The parties will then reconcile the actual fees after the franchisee reports the correct Adjusted Gross Sales. Better Blend also has the right to remotely access the franchisee's point-of-sale system to calculate Adjusted Gross Sales.