Can the Bang Cookies Brand Development Fund be used for maintenance and upgrades to the System Website?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (3) Franchisor, in Franchisor's Reasonable Business Judgment, shall direct all advertising, media placement, marketing and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation thereof.
Without limiting the foregoing, the Brand Development Fund may also be utilized for evaluation and monitoring of the Business Management Systems, maintenance and upgrades to the System Website, and development of Digital Media;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the Brand Development Fund can be used for maintenance and upgrades to the System Website. The document specifies that the Brand Development Fund may be used for various costs and expenses related to the brand's awareness goals. This includes expenses incurred by Bang Cookies for advertising, marketing, product and service testing, product and service development, maintenance, evaluation and monitoring of the Business Management Systems, upgrades to the System Website, and development of Digital Media.
Bang Cookies directs all advertising, media placement, marketing, and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation thereof. The Brand Development Fund may also be utilized for evaluation and monitoring of the Business Management Systems, maintenance and upgrades to the System Website, and development of Digital Media.
Franchisees contribute to this fund through a mandatory and continuing fee, which is a percentage of their Gross Sales, but not exceeding 2%. While franchisees are required to participate in programs instituted by the Brand Development Fund, Bang Cookies is not obligated to ensure that expenditures in any geographic area are proportionate to the contributions from Bang Cookies Shops in that area. This means that a franchisee's contribution does not guarantee direct benefits or marketing focused specifically on their location.
Bang Cookies also has the right to manage the Brand Development Fund as it sees fit, including the ability to incorporate it or operate it through a separate entity. The funds are not required to be segregated from other assets, and Bang Cookies can borrow or invest surplus funds. This gives Bang Cookies significant control over how the fund is managed and spent, with the ultimate goal of enhancing the overall brand.