Who determines when, how, and where payments deposited into the Brand Fund for 1 800 Packouts will be spent?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) 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, development of advertising and marketing materials, to pay wages for digital marketing, graphic design, and/or marketing initiatives and to otherwise obtain and build brand awareness such as through trade shows, other events, or other channels.
All advertising and marketing materials will be prepared by us or by outside advertising/public relations/promotional agencies.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the franchisor has sole discretion over the Brand Fund. Specifically, 1 800 Packouts determines when, how, and where the payments deposited into the Brand Fund will be spent. This fund is supported by franchisee contributions of 3% of monthly Gross Sales, known as the Marketing Fee.
This means that while franchisees contribute to the Brand Fund, they do not have direct control over how those funds are used. 1 800 Packouts selects the types of media and the locations for advertising campaigns, utilizing channels such as print, radio, television, telephone, smart phones, social media, and the Internet. The funds may also be used for public relations, developing marketing materials, wages for marketing staff, and building brand awareness through trade shows and other events.
1 800 Packouts will prepare an annual, unaudited statement of monies collected and costs incurred by the Brand Fund, which is available to franchisees upon written request. While 1 800 Packouts aims to maximize recognition of the brand, it is not obligated to ensure that expenditures in any specific geographic area are proportionate to the contributions from franchisees in that area, nor that any franchisee will directly benefit in proportion to their contribution. This gives 1 800 Packouts significant latitude in how it manages and allocates the Brand Fund.
1 800 Packouts also has the option to modify or eliminate any advisory council that they may establish from time to time. The Brand Fund can be terminated with 30 days' prior written notice, with unspent monies divided between 1 800 Packouts and franchisees based on contributions during the 12 months prior to termination. 1 800 Packouts can reinstate the Brand Fund at any time after termination.