What is the name of the fee that 1 800 Packouts franchisees must contribute to the Brand Fund?
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.
The Brand Fund will be held in an account separate from our other funds. We may spend in any fiscal year an amount greater or less than the total contribution of Franchised Businesses to the Brand Fund in that year. If we do not use all the funds in the Brand Fund in the year in which they accrue, we may use these amounts in the next fiscal year. We may cause the Brand Fund to borrow from us or other lenders to cover deficits of the Brand Fund or cause the Brand Fund to invest any surplus for future use by the Brand Fund. We may collect for remission to the Brand Fund any advertising monies or credits offered by any supplier to you based upon purchases you make. All interest earned on monies contributed to the Brand Fund will be used to pay advertising costs of the Brand Fund before other assets of the Brand Fund are expended. Sums paid by you to the advertising fund may be used by us to defray any of our operating expenses and overhead reasonably related to the administration, direction or operation of the advertising fund, programs, and activities. We will prepare an annual, unaudited statement of monies collected and costs incurred by the Brand Fund and will make it available to you on written request.
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 1 800 Packouts' 2025 Franchise Disclosure Document, franchisees must contribute to the Brand Fund by paying the "Marketing Fee". This fee is designated by 1 800 Packouts and can be up to 3% of the franchisee's Gross Sales. The Brand Fund is administered by 1 800 Packouts, and the funds are used for advertising and marketing programs.
1 800 Packouts determines how the Brand Fund monies are spent, including the types of media used and the location of advertising campaigns. These media can include print, radio, television, telephone, smart phone, social media, and the Internet. The funds may also be used for general public relations, business development, and building brand awareness.
The Brand Fund is held in a separate account, and 1 800 Packouts may spend more or less than the total contributions in any fiscal year. Unused funds can be carried over to the next fiscal year, and the Brand Fund may borrow or invest to cover deficits or surpluses. An annual, unaudited statement of monies collected and costs incurred by the Brand Fund will be made available to franchisees upon written request.
1 800 Packouts has the right to terminate the Brand Fund with 30 days' written notice, and any unspent monies will be distributed to 1 800 Packouts and its franchisees in proportion to their contributions during the preceding 12-month period. 1 800 Packouts also retains the right to reinstate the Brand Fund under the same terms and conditions.