What kind of costs can Bang Cookies use the Brand Development Fund for?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
t to exceed 2% of weekly Gross Sales to the Brand Development Fund. 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.
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. Specifically, Bang Cookies may use the fund for market studies, service and product development, testing, research studies, and technology development. Additionally, the fund can cover advertising and public relations studies or services, the creation and printing of advertising and marketing materials, and the development of advertising copy and commercials.
Further, the Brand Development Fund can be used for tracking costs, agency fees, and administrative costs, including reimbursements for direct administrative and personnel costs associated with advertising and public relations. It can also be used for any other costs associated with the development, marketing, and testing of advertising, marketing, and public relations materials. The fund can also be used to purchase media placement, advertising time, and public relations materials in national, regional, or other advertising and public relations media.
Bang Cookies also states that they may use the Brand Development Fund to compensate themselves for administrative fees associated with managing the Brand Development Fund and for their internal employee salaries, expenses and overhead associated with or reasonably allocated to managing the activities of the Brand Development Fund and performing services on behalf of the Brand Development Fund including, but not limited to, directing, developing and managing media of the Brand Development Fund. However, the Brand Development Fund will not be used to directly promote a franchisee's shop or marketing area. It's important to note that Bang Cookies is not required to segregate the Brand Development Fund from its general operating funds and is not a fiduciary or trustee of the Brand Development Fund.