What are some potential uses of the Brand Development Fund by Bang Cookies?
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 may be required to contribute up to 2% of their weekly gross sales to this fund. However, neither Bang Cookies corporate shops nor affiliate-owned shops are required to contribute to the Brand Development Fund. The fund is intended to benefit the Bang Cookies system as a whole, not individual franchise locations. The Brand Development Fund will be uniformly imposed upon all franchisees.
Specifically, Bang Cookies may use the Brand Development Fund for market studies, service and product development, testing, and research studies. It can also be used for technology development, advertising, and public relations efforts, including the creation and distribution of marketing materials. Other potential uses include covering agency fees, administrative costs, and the purchase of media placements. Bang Cookies also states that they may use the Brand Development Fund to compensate themselves for administrative fees and internal employee salaries, expenses, and overhead associated with managing the Brand Development Fund.
Bang Cookies is not obligated to segregate the Brand Development Fund from its general operating funds and is not considered a fiduciary or trustee of the fund. While franchisees contribute to the fund, they may or may not directly benefit from the technology developments and improvements that the fund supports. Franchisees are entitled to an unaudited accounting of how the Brand Development Fund's monies were spent each year, available no more than once in any 12-month period. The Brand Development Fund will not be used to directly promote an individual Bang Cookies shop or its marketing area.
It is important for prospective franchisees to understand that while they contribute to the Brand Development Fund, Bang Cookies has significant discretion in how the funds are used. The fund is not intended for local marketing efforts, and franchisees should not expect a direct return on their contributions in the form of increased sales at their specific location. Instead, the fund supports broader initiatives aimed at enhancing the Bang Cookies brand and system as a whole.