What is a 1 800 Packouts franchisee's obligation regarding the Brand Fund?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Marketing Fee | 3% of Gross Sales | Due upon receipt of payment from client. | You must contribute the Marketing Fee to an advertising fund that we will operate (the "Brand Fund"). See 11 for information regarding the Brand Fund. |
| Advertising Cooperative Contributions | Established by regional advertising cooperative ("Cooperative") members | Established by Cooperative members and, if established, paid to us. | You must become a member of and contribute to any Cooperative that is established in your area. Franchisor-owned outlets in such an area will have the same voting power as other outlets. |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund. Specifically, a 1 800 Packouts franchisee must pay a Marketing Fee, which is allocated to the Brand Fund that the franchisor operates.
The Marketing Fee is 3% of Gross Sales. This fee is due upon receipt of payment from the client. The FDD refers to Item 11 for further information regarding the Brand Fund.
In addition to the Brand Fund, 1 800 Packouts franchisees must become members of and contribute to any regional advertising cooperative established in their area. Franchisor-owned outlets in that area will have the same voting power as other outlets. The contribution amount for these cooperatives is established by the cooperative members themselves and, if established, is paid to the franchisor.