Who administers the Brand Development Fund for Bb.Q Chicken?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In administering the Brand Development Fund, we and our designees undertake no obligation to make expenditures for you, which are equivalent or proportionate to your contribution or to ensure that any particular franchisee benefits directly or pro rata from the placement of advertising.
We shall be entitled to reimbursement from the Brand Development Fund for our reasonable expenses in managing the Brand Development Fund, not to exceed fifteen percent (15%) of the Brand Development Fund.
- 8.3.2 You agree that the Brand Development Fund may be used to satisfy any and all costs of maintaining, administering, directing and preparing advertising (including, without limitation, the cost of preparing and conducting television, radio, magazine and newspaper advertising campaigns; direct mail and outdoor billboard advertising; internet marketing; public relations activities; employing advertising agencies to assist therein; and costs of our personnel and other departmental costs for advertising that is internally administered or prepared by us).
All sums paid by you to the Brand Development Fund shall be maintained in a separate account by us and may be used to defray our expenses, if any, as we may incur in activities reasonably related to the administration or direction of the Brand Development Fund and advertising programs for franchisees and the System.
The Brand Development Fund and its earnings shall not otherwise inure to our benefit except that any resulting technology or intellectual property shall be deemed our property.
The Brand Development Fund is operated solely as a conduit for collecting and expending the Brand Development Fees as outlined above.
- 8.3.3 A statement of the operations of the Brand Development Fund shall be prepared annually by us and shall be made available to you upon request.
This statement of operations may be unaudited.
- 8.3.4 Any monies remaining in the Brand Development Fund at the end of any year will carry over to the next year.
Although the Brand Development Fund is intended to be of perpetual duration, we may terminate the Brand Development Fund.
The Brand Development Fund shall not be terminated, however, until all monies in the Brand Development Fund have been expended for advertising or promotional purposes or returned to contributing Franchised Businesses or those operated by us, without interest, on the basis of their respective contributions.
- 8.3.5 If we elect to terminate the Brand Development Fund, we may, in our sole discretion, reinstate the Brand Development Fund at any time.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the Brand Development Fund is administered by Bb.Q Chicken. Bb.Q Chicken is entitled to reimbursement from the Brand Development Fund for reasonable expenses in managing the fund, but this reimbursement cannot exceed 15% of the fund's total.
The funds collected are to be maintained in a separate account by Bb.Q Chicken and can be used to cover expenses related to the administration and direction of the Brand Development Fund, as well as advertising programs for franchisees and the Bb.Q Chicken system. These advertising activities can include television, radio, magazine, newspaper, direct mail, outdoor billboard advertising, internet marketing, and public relations.
Bb.Q Chicken will provide an annual statement of the Brand Development Fund's operations, which will be made available to franchisees upon request. This statement may be unaudited. Any money remaining in the Brand Development Fund at the end of the year will be carried over to the next year. Although the fund is intended to be perpetual, Bb.Q Chicken reserves the right to terminate it, ensuring that all monies are expended for advertising or promotional purposes or returned to contributing franchisees and company-operated businesses.
Bb.Q Chicken also retains the right to reinstate the Brand Development Fund at any time, should it elect to terminate it. If reinstated, the fund will operate as previously described. This gives Bb.Q Chicken significant control over the fund and its usage, with franchisees contributing to a fund that Bb.Q Chicken manages and from which it can draw to cover its own administrative expenses.