How does Beyond Juicery Eatery account for incentive fees received from vendors?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.08 You shall purchase our proprietary products from us or our Designated Supplier at a reasonable price established by us or our supplier.
You acknowledge that we may profit from the sale of proprietary products to you and receive consideration from the supplier with respect to your purchases of such proprietary products by you.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 FDD, Beyond Juicery Eatery franchisees are required to purchase proprietary products either directly from Beyond Juicery Eatery or from a designated supplier. The FDD states that Beyond Juicery Eatery may profit from these sales to franchisees. Additionally, Beyond Juicery Eatery may receive consideration from the supplier based on the franchisee's purchases of these proprietary products.
This arrangement means that Beyond Juicery Eatery has the potential to generate revenue not only through franchise fees, royalties, and other standard charges but also through the sale of goods to its franchisees and incentives from suppliers. This creates a dual revenue stream for the franchisor, aligning its interests with the success and purchasing power of its franchisees.
For a prospective franchisee, this highlights the importance of understanding the pricing of proprietary products. While the products must be offered at a 'reasonable price,' it is essential to evaluate whether these prices are competitive and how they might impact the overall profitability of the franchise. Furthermore, the franchisee should inquire about the specifics of the supplier relationships and any potential conflicts of interest that may arise from Beyond Juicery Eatery receiving incentives from these suppliers. Understanding these dynamics is crucial for making an informed investment decision.