When is the Bb.Q Chicken Brand Development Fund contribution paid?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Development Fund: We have the right to establish and administer a brand development fund (the "Fund") to advertise the System and the products offered by Franchised Businesses on a regional or national basis. You must contribute 2% of the Gross Sales for the Franchised Business each month to the Fund, and your Fund contribution will be paid to us at the same time and in the same manner as the royalty fee.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 33–41)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, franchisees must contribute 2% of their Gross Sales each month to the Brand Development Fund. This contribution is paid to Bb.Q Chicken at the same time and in the same manner as the royalty fee.
This means that a portion of the franchisee's monthly revenue is allocated to a fund used for advertising and promoting the Bb.Q Chicken brand on a regional or national level. The funds are intended to enhance brand recognition and drive business to all franchise locations.
Franchisees should budget for this ongoing expense, ensuring they allocate 2% of their gross sales each month for the Brand Development Fund contribution, in addition to the royalty fees. Understanding the timing and method of payment is crucial for managing cash flow and maintaining compliance with the franchise agreement.