What is the role of 1 800 Packouts in administering the Brand Fund?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
d any amount on advertising in the market in which your Franchised Business is located.
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.
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's 2025 Franchise Disclosure Document, 1 800 Packouts administers the Brand Fund. Franchisees must contribute up to 3% of their gross sales to the Brand Fund. While Franchised Businesses owned by 1 800 Packouts or its affiliates also contribute to the Brand Fund, there is no set amount for their contribution.
1 800 Packouts has the sole discretion to determine when, how, and where the payments deposited into the Brand Fund will be spent. They also select the types of media used and the location of advertising campaigns administered through the Brand Fund. The media used may include print, radio, television, telephone, smart phone, social media and Internet. The funds may also be used for general public relations, business development, and to otherwise obtain and build brand awareness. All advertising and marketing materials will be prepared by 1 800 Packouts or by outside advertising/public relations/promotional agencies. The Brand Fund will not be used for soliciting new franchise sales.
The Brand Fund will be held in an account separate from 1 800 Packouts's other funds. 1 800 Packouts may spend more or less than the total contribution of Franchised Businesses to the Brand Fund in any given year, and unused funds may be carried over to the next fiscal year. 1 800 Packouts may also cause the Brand Fund to borrow or invest funds. Sums paid by franchisees to the advertising fund may be used by 1 800 Packouts to defray any of their operating expenses and overhead reasonably related to the administration, direction or operation of the advertising fund, programs, and activities. 1 800 Packouts will prepare an annual, unaudited statement of monies collected and costs incurred by the Brand Fund and will make it available to franchisees on written request.
1 800 Packouts has the right to terminate the Brand Fund with 30 days' written notice to franchisees. In the event of termination, 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 has the right to reinstate the Brand Fund upon the same terms and conditions set forth in the Franchise Agreement.