What is the geographic limit for a Bang Cookies franchisee's marketing efforts?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
sor, in Franchisor's discretion and Reasonable Business Judgment, may require that the deficiency be added as additional local marketing expenditures, over and above 2% of Franchisee's Gross Sales, that Franchisee must spend within the immediately succeeding quarterly period or periods, as directed by Franchisor, or, at Franchisor's discretion, be contributed to a Brand Development Fund. All marketing of the Franchised Business by Franchisee must be pre-approved, in writing by Franchisor.
Franchisor reserves the right to reject any and all marketing efforts requested by Franchisee and to prescribe all marketing, marketing media, marketing channels, promotions, copy, creative, and messaging that Franchisee may or may not use in Franchisee's marketing of the Franchised Business. Franchisee further agrees that:
- (1) In addition to calendar year quarterly reports, Franchisee shall provide Franchisor with monthly reports documenting Franchisee's marketing initiatives, expenses incurred, placements secured, and other metrics and financial information as designated by Franchisor;
- (2) Prior to opening the Franchised Business, Franchisee shall submit to Franchisor, Franchisee's grand opening marketing plan for review and approval by Franchisor. Franchisee shall use only those portions of its grand opening marketing that are pre-approved by Franchisor and consistent with Franchisor's standards and specifications. Not less than 30 days prior to the opening of the Franchised Business, Franchisee shall spend not less than $10,000 to market and promote the grand opening of the Franchised Business in accordance with Franchisor's standards and specifications;
- (3) At all times, Franchisee's marketing efforts and the distribution of each marketing channel and media engaged by Franchisee must be directly targeted to Franchisee's Designated Territory. Franchisee shall not direct or target Franchisee's mark
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, a franchisee's marketing efforts must be directly targeted to their Designated Territory. Franchisees are not allowed to intentionally solicit or attract customers from outside of this designated area. If marketing efforts inadvertently reach beyond the Designated Territory, Bang Cookies has the right to require the franchisee to discontinue that marketing.
Bang Cookies also reserves the right to reject any marketing efforts requested by the franchisee and can prescribe the marketing media, channels, promotions, copy, creative, and messaging that the franchisee is allowed to use. This means that while a franchisee may have ideas for marketing, Bang Cookies has the final say in what is approved and implemented.
Prior to opening, a Bang Cookies franchisee must submit a grand opening marketing plan to Bang Cookies for review and approval. The franchisee is required to spend at least $10,000 to market and promote the grand opening, using only pre-approved marketing strategies that align with Bang Cookies' standards. Franchisees must also provide monthly reports to Bang Cookies documenting their marketing initiatives, expenses, placements, and other financial information.