factual

How is the Bb.Q Chicken Brand Development Fund contribution paid?

Q: How is the Bb.Q Chicken Brand Development Fund contribution paid?

**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. During the fiscal year ending December 31, 2024, the Brand Development Fund had the following expenditures: 10% was spent on production 63% was spent on media placement 17% was spent on customer retention program 7% was spent on out-of-home (OOH) placement 3% was spent on brand activation The Fund is maintained and administered by us or our designee as follows: Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 33–41)

Bb_Q_Chicken Franchise · 2025 FDD

Answer 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. During the fiscal year ending December 31, 2024, the Brand Development Fund had the following expenditures:

10% was spent on production 63% was spent on media placement

17% was spent on customer retention program

7% was spent on out-of-home (OOH) placement

3% was spent on brand activation

The Fund is maintained and administered by us or our designee as follows:

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.

The Brand Development Fund is used by Bb.Q Chicken to advertise the System and the products offered by Franchised Businesses on a regional or national basis. During the fiscal year ending December 31, 2024, the Brand Development Fund allocated its spending with 63% spent on media placement, 17% on customer retention programs, 10% on production, 7% on out-of-home placement, and 3% on brand activation.

Bb.Q Chicken maintains and administers the Fund and directs all advertising programs, having sole discretion to approve creative concepts, materials, and media used. The company may use the Fund to support its website and conduct social media initiatives. Any Franchised Businesses operated by Bb.Q Chicken will contribute to the Fund on the same basis as franchisees. Bb.Q Chicken is not a fiduciary of the Fund.

Franchisees should note that the Brand Development Fund is intended to maximize general public recognition and acceptance of the Marks and improve the collective success of all Franchised Businesses operating under the System. However, Bb.Q Chicken is not required to make expenditures for franchisees that are equivalent or proportionate to their contribution or ensure that any particular franchisee benefits directly or pro rata from the placement of advertising. Additionally, Bb.Q Chicken is not obligated to spend any amount on advertising in a franchisee's specific area or territory separate from the Fund.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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