Can the Angry Chickz Brand Fund be used for expenditures related to co-branding arrangements?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Expenditures and uses of the fund may include: (a) creative development, production and placement of print and electronic media advertisements, commercials, musical jingles, decals, radio spots, audio advertising, point of purchase materials, direct mail pieces, literature, outdoor advertising, door hangers, and other advertising and promotional materials; (b) creative development, preparation, production and placement of video, audio and written materials and electronic media, including social media campaigns, (c) purchasing artwork and other components for advertising; (d) media placement and buying, including search engine marketing, search engine optimization, and all associated expenses and fees; (e) administering national, regional and multi-regional marketing and advertising programs; (f) market research, marketing studies and customer satisfaction surveys, including the use of secret shoppers; (g) development, production and acquisition of premium items, giveaways, promotions, contests, public relations events, and charitable or nonprofit events; (h) creative development of visual advertisements and marketing materials, including signage, posters, and graphics; (i) recognition and awards events and programs; (j) system recognition events, including periodic national and regional conventions and meetings; (k) website, extranet and/or Intranet development, implementation and maintenance; (l) development, implementation and maintenance of websites, loyalty programs and/or mobile applications, bookings/reservations, and/or related strategies; (m) retention and payment of advertising and promotional agencies and other outside advisors, including retainers and management fees; (n) public relations and community involvement activities and programs; (o) expenditures for activities conducted for the benefit of co-branding, or other arrangements where products and/or services are offered in conjunction with other marks or through alternative channels of distribution; and (p) expenditures with others joint marketing campaigns, jointly developed advertising and other joint programs.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–33)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the Brand Fund can be used for expenditures related to co-branding arrangements. Specifically, the FDD states that the Brand Fund may be used for expenditures for activities conducted for the benefit of co-branding, or other arrangements where products and/or services are offered in conjunction with other marks or through alternative channels of distribution. It can also be used for expenditures with others joint marketing campaigns, jointly developed advertising and other joint programs.
This means that Angry Chickz has the discretion to use the Brand Fund, which is funded by franchisee contributions of up to 4% (presently 2%) of gross sales, to promote the brand through partnerships with other businesses or marketing initiatives that involve other brands. This could include joint advertising campaigns, special promotions featuring co-branded products, or other collaborative efforts designed to increase brand awareness and sales.
For a prospective Angry Chickz franchisee, this indicates that a portion of their Brand Fee contributions could be used to fund co-branding initiatives. While this could potentially broaden the reach of Angry Chickz's marketing efforts, franchisees should be aware that they may not directly benefit from these specific expenditures. Franchisees should also note that Angry Chickz has control over the use of the fund and is not obligated to ensure that any particular franchisee benefits directly or proportionately from fund advertising.