What are some examples of how Bang Cookies may use the Brand Development Fund?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System.
Our company and/or affiliate owned Shops may but are not required to contribute to the Brand Development Fund.
The Brand Development Fund will maintain unaudited financial records detailing its expenditures and will make available to you, no more frequently than one time in any 12 month period, an unaudited accounting of how monies contributed to the Brand Development Fund were spent each year.
We are not required to segregate the Brand Development Fund from our general operating funds and we are not a fiduciary or trustee of the Brand Development Fund.
The Brand Development Fund will not be used to directly promote your Shop or the marketing area in which your Shop will be located. (Franchise Agreement, Article 9.A.).
We may use the Brand Development Fund to develop and test various media and technologies for potential use and/or improvement of the operations of Shops and the marketing of Shops.
These technology developments and/or improvements may relate, among other things, to our website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Shops.
You may or may not benefit from these technology developments and improvements.
The Brand Development Fund will be uniformly imposed upon all franchisees. (Franchise Agreement, Article 9.A.).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 29–36)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Brand Development Fund can be used for a variety of purposes related to marketing, research, and development. Franchisees are required to contribute a weekly sum not exceeding 2% of their weekly Gross Sales to this fund. However, Bang Cookies and its affiliate-owned shops are not required to contribute to the Brand Development Fund. This fund is intended to benefit the franchise system as a whole, not individual shops. The Brand Development Fund will be uniformly imposed upon all franchisees.
Bang Cookies specifies that the Brand Development Fund may be used for market studies, research, service and product development, and testing. It can also cover advertising and public relations studies or services, including the creation and printing of advertising and marketing materials, advertising copy, and commercials. Other potential uses include tracking costs, agency fees, and administrative costs, which may include reimbursing Bang Cookies for direct administrative and personnel costs related to advertising and public relations. The fund can also be used for purchasing media placement, advertising time, and public relations materials in various media outlets.
Furthermore, Bang Cookies may use the Brand Development Fund to develop and test different media and technologies aimed at improving shop operations and marketing. These technological advancements may relate to the Bang Cookies website and other web offerings. It's important to note that franchisees may or may not directly benefit from these technology developments and improvements. Bang Cookies also states that it may use the Brand Development Fund to compensate itself for administrative fees and internal employee salaries, expenses, and overhead associated with managing the fund's activities.
While the Brand Development Fund will not be used to directly promote an individual Bang Cookies shop or its specific marketing area, Bang Cookies may indirectly market the sale of franchises by including information about franchise availability and contact details on advertising and marketing materials developed with the fund. Bang Cookies will provide an unaudited accounting of how the Brand Development Fund monies were spent each year, available no more than once in any 12-month period. Bang Cookies is not required to segregate the Brand Development Fund from its general operating funds and is not considered a fiduciary or trustee of the fund.