What is the intended purpose of the 1 800 Packouts Brand Fund?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand Fund is intended to enhance recognition of the Marks and patronage of Franchised Businesses. We are a nationwide brand and intend to use the fund to help promote the image and good will of the entire brand through local, regional and national marketing campaigns. Although we will endeavor to use the Brand Fund to develop advertising and marketing materials, we are not obligated to ensure that expenditures by the Brand Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Brand Fund by Franchised Businesses operating in that geographic area or that any Franchised Business will benefit directly or in proportion to its contribution to the Brand Fund from the development of advertising and marketing materials. We assume no direct or indirect liability or obligation to you or any other Franchised Business in connection with the maintenance, direction, or administration of the Brand Fund.
We have the right, in our sole discretion, to terminate the Brand Fund upon 30 days' written notice to you. All unspent monies on the date of termination will be distributed to us and our franchisees in proportion to the respective contributions to the Brand Fund during the preceding 12-month period. We will have the right to reinstate the Brand Fund upon the same terms and conditions set forth in the Franchise Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–39)
What This Means (2025 FDD)
According to the 2025 FDD, the 1 800 Packouts Brand Fund is intended to enhance recognition of the brand's marks and increase customer patronage of franchised businesses. The fund is used to promote the image and goodwill of the entire brand through local, regional, and national marketing campaigns. 1 800 Packouts emphasizes that while they will try to develop advertising and marketing materials, they are not obligated to ensure that expenditures in any geographic area are proportionate to the contributions from franchisees operating in that area. Nor is 1 800 Packouts obligated to ensure that any franchisee will benefit directly or in proportion to their contribution to the Brand Fund from the development of advertising and marketing materials. 1 800 Packouts assumes no direct or indirect liability to franchisees in connection with the maintenance, direction, or administration of the Brand Fund.
1 800 Packouts has the right to terminate the Brand Fund with 30 days' written notice to franchisees. If the Brand Fund is terminated, all unspent monies will be distributed to 1 800 Packouts and its franchisees in proportion to their respective contributions to the Brand Fund during the preceding 12-month period. 1 800 Packouts also retains the right to reinstate the Brand Fund under the same terms and conditions as outlined in the Franchise Agreement.
1 800 Packouts may use various media for advertising campaigns administered through the Brand Fund, including print, radio, television, telephone, smart phone, social media, and the Internet. The funds may also be used for general public relations, business development, and to build brand awareness. All advertising and marketing materials will be prepared by 1 800 Packouts or by outside advertising/public relations/promotional agencies. The FDD specifies that the advertising fund will not be used for soliciting new franchise sales.