Does the Bang Cookies franchisee have any control over how the Brand Development Fund is spent?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ribute to the Brand Development Fund. Upon such written notice to Franchisee, the percentage of Gross Sales to be paid by Franchisee to the Brand Development Fund will be applicable for each and every weekly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees;
- (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;
- (4) Franchisee agrees that the purpose of the advertising, media, marketing and activities financed by the Brand Development Fund is and shall be for the general enhancement of the System brand as associated with the Licensed Marks and general public brand recognition and awareness of the Licensed Marks. The Brand Development Fund will not be utilized to directly or indirectly market or promote the Franchised Business or, unless otherwise directed by Franchisor, in Franchisor's Reasonable Business Judgment, pay for media placements that may benefit or include any media market that includes Franchisee's Shop Location or Designated Territory;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees have limited direct control over the Brand Development Fund. Bang Cookies retains sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, as well as the geographic, market, and media placement and allocation thereof. The purpose of the fund is for the general enhancement of the System brand and public recognition of the Licensed Marks.
The Brand Development Fund will not be used to directly market or promote an individual Franchised Business, unless Bang Cookies directs otherwise. Franchisees are required to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund. Franchisees must contribute to the fund, with contributions capped at 2% of Gross Sales for each weekly accounting period.
Bang Cookies may establish a council to provide guidance on the administration of the Brand Development Fund and marketing matters. However, this council serves only in an advisory capacity, and Bang Cookies selects its members, which may include employees, franchisees, and third parties. While Bang Cookies endeavors to utilize the fund to develop advertising and marketing materials and programs, it has no obligation to ensure that expenditures in any geographic area are proportionate to the contributions from Bang Cookies Shops in that area, or that any Bang Cookies Shops will benefit directly or in proportion to their contribution.