Does 1 800 Packouts select the location of the advertising campaigns administered through the Brand Fund?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 has the authority to determine the specifics of advertising campaigns funded by the Brand Fund. Specifically, 1 800 Packouts decides when, how, and where the Brand Fund monies are spent. This includes selecting the types of media used and the location of advertising campaigns. The media used can 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 build brand awareness. All advertising and marketing materials will be prepared by 1 800 Packouts or by outside agencies. The advertising fund will not be used for soliciting new franchise sales.
This means that franchisees contribute a percentage of their gross sales (up to 3%) to the Brand Fund, but 1 800 Packouts has complete control over how those funds are spent. Franchisees do not have direct input on the advertising strategies or the selection of advertising locations. While the Brand Fund is intended to enhance recognition of the Marks and patronage of Franchised Businesses, 1 800 Packouts is not obligated to ensure that expenditures benefit any specific geographic area in proportion to the contributions from that area.
This arrangement is fairly common in franchising, where franchisors often control brand-level marketing to ensure consistency and brand uniformity. However, it's important for prospective franchisees to understand that their contributions to the Brand Fund may not directly benefit their specific location. Franchisees are also required to conduct local marketing in their area, separate from the Brand Fund, and must have 1 800 Packouts's approval on all creative development of advertising and promotional messages.