Can Angry Chickz use Brand Fund money for market research?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
8.3.1 Franchisee's Brand Fee shall be contributed to the Brand Fund. An amount equal to all Brand Fund revenues and allocations will be expended for national, regional, or local advertising, public relations or promotional campaigns or programs designed to promote and enhance the image, identity or patronage of franchised and Company and Company Affiliate owned Restaurants in the United States and such other regions as Company may designate. These expenditures 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 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the Brand Fund, which is funded by franchisee's Brand Fees, can be used for market research. Specifically, the Brand Fund can be used for "market research, marketing studies and customer satisfaction surveys, including the use of secret shoppers".
This means that Angry Chickz has the discretion to allocate funds from the Brand Fund to conduct market research, marketing studies, and customer satisfaction surveys. This could include hiring third-party firms to conduct research, using secret shoppers to evaluate the customer experience, or conducting other activities to better understand the market and customer preferences.
As an Angry Chickz franchisee, you contribute to this fund through your Brand Fee, and these contributions may be used for market research purposes that Angry Chickz deems beneficial for the brand. However, Angry Chickz determines how the Brand Fund is spent, and franchisees do not have direct control over these decisions. Franchisees are required to participate in all research programs instituted by Angry Chickz through the Brand Fund, unless directed otherwise in writing by Angry Chickz.