Risk Score
Pending analysis
Investment Range
$251,700 - $621,000
Franchise Fee
$20,000
Total US Locations
7
Business Summary
Better Blend operates quick service restaurants that specialize in healthy and convenient nutritionally complete smoothies and smoothie bowls. The business aims to serve health, fitness, and nutrition-conscious consumers.
Corporate History
Better Blend Franchising, LLC was formed in Ohio on June 18, 2022, and began offering franchises on July 15, 2022. An affiliate, Better Blend Nutrition LLC, opened the first Better Blend location in Florence, Kentucky, in 2018. The franchisor does not operate businesses of the type being franchised.
Financial Overview
Investment Range
$251,700 - $621,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$155,000
Equipment Costs (High)
$410,000
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Better Blend Franchising, LLC has generated significant losses from operations and has negative cash flows. As of December 31, 2023, the company has a working capital deficit of $201,811 and an accumulated deficit of $260,381. These financial factors raise substantial doubt about Better Blend's ability to continue operating as a going concern. Management plans to address this through additional equity contributions, debt financing, expenditure management, and focusing on the sale of new franchises.
Financing Details
Better Blend does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations. Franchisees are responsible for securing their own funding for the initial investment and ongoing operations.
Performance Metrics
Total US Locations
7
Franchised Units
4
Corporate Units
3
Avg Square Footage
1,500
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Better Blend has no litigation to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Better Blend Franchising, LLC has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, Better Blend franchisees must provide advance notice, be in compliance with all contractual obligations to the franchisor and third parties, and renovate their business to meet the then-current brand standards. They must sign the franchisor's current form of franchise agreement and related documents, including a personal guaranty. Franchisees must not have defaulted more than twice under the agreement, must have complied with all ethics and values requirements, and must pay a renewal fee equal to 50% of the then-current franchise fee or $17,500, whichever is greater. Additionally, franchisees and each owner must sign a general release of claims.
Training & Support Program
Franchisor Assistance
Before opening, Better Blend helps franchisees by reviewing potential locations and advising on the layout, design, and build-out of the business. The franchisor provides lists of specifications and approved suppliers for equipment, signs, fixtures, inventory, and supplies. If requested, Better Blend will review the franchisee's pre-opening business plan and financial projections. Franchisees and up to three other employees receive initial training at the franchisor's headquarters. Better Blend also advises on market introduction plans and provides at least three days of on-site opening support for the franchisee's first business. After opening, Better Blend offers advice by phone or electronic communication for improving and developing the business and resolving operational issues. Upon request, they provide recommended prices for products and services, as well as recommended administrative, bookkeeping, accounting, and inventory control procedures. Better Blend also manages the Marketing Fund and maintains a brand website that includes franchisee information.
Initial Training Hours
86
Training Location
Cincinnati, Ohio
Ongoing Support
After opening, Better Blend provides ongoing support to franchisees, offering advice by telephone or electronic communication regarding business improvement, development, and resolving operating problems, to the extent the franchisor deems reasonable. If in-person support is requested, a fee plus expenses may be charged. The franchisor manages the Marketing Fund and maintains a brand website that includes franchisee business information.
Franchise Requirements
Ideal Candidate Profile
Better Blend looks for franchisees who are willing to devote substantial time and attention to their business. If the business is owned by an entity, a Principal Executive must be designated who owns at least 30% of the business and is primarily responsible for it. This Principal Executive must complete initial training and any future post-opening training, and make reasonable efforts to attend all required meetings. While on-premises supervision by the owner is recommended, it is not strictly required if a trained general manager is in place.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Better Blend franchisees receive a territory with an approximate population of 150,000 people, calculated as a combined population of work and residual residents. This territory is typically defined as a specific radius around the franchisee's approved location.
Staffing Notes
Better Blend requires that a franchisee's business always operates under the on-site supervision of either the Principal Executive, a general manager who has completed the franchisor's training program, or another properly trained supervisor. Franchisees are solely responsible for all hiring decisions and employment conditions for their personnel, and must hire a sufficient number of staff to handle their business volume, adhering to any system standards regarding staffing levels.