What kind of events can the Bang Cookies franchisor require the franchisee to participate in?
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 marketing efforts with the purpose or effect of soliciting or attracting customers outside of Franchisee's Designated Territory. To the extent that Franchisee's marketing efforts involve a marketing medium or distribution channel that is targeted to Franchisee's Designated Territory but reaches outside of and beyond Franc
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Based on the 2024 Bang Cookies Franchise Disclosure Document, franchisees are required to engage in marketing efforts, particularly for their grand opening. Prior to opening, franchisees must submit a grand opening marketing plan to Bang Cookies for review and approval. Franchisees are required to spend a minimum of $10,000 to market and promote the grand opening of their Bang Cookies shop.
Bang Cookies retains control over all marketing efforts, reserving the right to reject any franchisee-requested marketing and prescribe all marketing-related elements. Franchisees must also provide monthly reports to Bang Cookies documenting their marketing initiatives, expenses, placements, and other metrics.
These requirements ensure that the franchisee's marketing aligns with Bang Cookies' standards and is targeted to the designated territory. This level of control is common in franchising to maintain brand consistency and prevent franchisees from marketing in ways that could harm the brand or solicit customers outside their territory. The franchisee grants Bang Cookies the right to use their name, address, photograph, and biographical information in any publication related to the Bang Cookies system, including those related to the sale of Bang Cookies franchises.