Who administers the Brand Fund for 1 800 Packouts franchisees?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. You must contribute the Marketing Fee an amount designated by us up to 3% of your Gross Sales to the Brand Fund. We will administer the Brand Fund. The Franchised Business owned by us or our affiliates will contribute to the Brand Fund but does not have a set amount it contributes.
We will determine, in our sole discretion, when, how and where the payments deposited into the Brand Fund will be spent. We select the types of media used and the location of the advertising campaigns administered through the Brand Fund. We use or may use the following media: print, radio, television, telephone, smart phone, social media and Internet. We may also use the funds for general public relations, for business development, and to otherwise obtain and build brand awareness. All advertising and marketing materials will be prepared by us or by outside advertising/public relations/promotional agencies. We will not use the advertising fund for soliciting new franchise sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–39)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the Brand Fund is administered by 1 800 Packouts itself. Franchisees are required to contribute up to 3% of their gross sales to the Brand Fund as a marketing fee.
The document specifies that 1 800 Packouts has the sole discretion to decide when, how, and where the funds are spent. These funds can be used for various advertising media, public relations, business development, and building brand awareness. All advertising and marketing materials will be prepared either by 1 800 Packouts or by outside agencies.
The Brand Fund is held in a separate account, and 1 800 Packouts may spend more or less than the total contributions in any given year, carrying over unused funds to the next fiscal year. They can also borrow from lenders or invest surpluses. Franchisees should note that 1 800 Packouts assumes no direct liability in connection with the administration of the Brand Fund, and there is no guarantee that expenditures will be proportionate to contributions from specific geographic areas.
1 800 Packouts also has the right to terminate the Brand Fund with 30 days' notice, distributing any unspent monies to themselves and the franchisees in proportion to their contributions over the preceding 12-month period. This gives 1 800 Packouts significant control over the fund and its usage, which is a common practice in franchising, but prospective franchisees should be aware of these terms.