Who maintains and administers the Bb.Q Chicken Brand Development Fund?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund is maintained and administered by us or our designee as follows:
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- We direct all advertising programs and have sole discretion to approve the creative concepts, materials and media used in the programs and their placement and allocation. Marketing and promotional materials may be developed in-house by us or we may employ one or more advertising agencies to develop these materials. The 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. We may use monies from the Fund to support our website and to conduct social media initiatives. Any Franchised Businesses operated by us will contribute to the Fund on the same basis as you. In administering the Fund, we and our designees are not required to make expenditures for you that are equivalent or proportionate to your contribution or make sure that any particular franchisee benefits directly or pro rata from the placement of advertising. We are not obligated to spend any amount on advertising in your area or territory separate from the Fund.
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- The Fund may be used to satisfy the costs of maintaining, administering, directing and preparing advertising, including the cost of preparing and conducting television, radio, magazine and newspaper advertising campaigns; direct mail and outdoor billboard advertising; public relations activities; employing advertising agencies; menu and product development; development and maintenance of our website; and costs of our personnel and other departmental costs for advertising that we administer or prepare internally. All sums you pay to the Fund will be accounted for separately from our general funds. We may reimburse ourselves out of the Fund for our reasonable administrative costs and expenses that we may incur in the administration or direction of the Fund and advertising programs for you and the System. The Fund and its earnings will not otherwise benefit us except that any resulting technology and intellectual property shall be deemed our property. The Fund is operated solely as a conduit for collecting and expending the Brand Development Fees as outlined above. Any sums paid to the Fund that are not spent in the year they are collected will be carried over to the following year. No portion of the Fund will be used for advertising that is primarily a solicitation of franchise sales.
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, the Brand Development Fund is maintained and administered by Bb.Q Chicken or its designee. Bb.Q Chicken has the authority to direct all advertising programs, including approving creative concepts, materials, media, and their placement. They may develop marketing materials in-house or employ advertising agencies. The fund aims to enhance public recognition of the Bb.Q Chicken brand and improve the success of all franchised businesses. Bb.Q Chicken can use the fund to support their website and social media initiatives, and any franchised businesses operated by them will contribute to the fund on the same basis as other franchisees. Bb.Q Chicken is not obligated to ensure that expenditures are equivalent or proportionate to each franchisee's contribution or that each franchisee benefits directly from advertising placement. They are also not obligated to spend any specific amount on advertising in a franchisee's particular area or territory separate from the fund.
The Brand Development Fund can cover costs related to advertising, including television, radio, magazine, and newspaper campaigns, direct mail, billboard advertising, public relations, advertising agencies, menu and product development, website maintenance, and the franchisor's personnel and departmental costs for advertising. All sums paid to the fund are accounted for separately from Bb.Q Chicken's general funds, and Bb.Q Chicken may reimburse itself for reasonable administrative costs. The fund's earnings will not benefit Bb.Q Chicken, except that any resulting technology and intellectual property will be their property. The fund operates solely as a conduit for collecting and expending Brand Development Fees, and any unspent funds will be carried over to the following year. No portion of the fund will be used for franchise sales solicitation.
For a prospective Bb.Q Chicken franchisee, this means that 2% of their gross sales each month goes into this fund. While Bb.Q Chicken controls how the fund is spent, it is intended to benefit the entire franchise system. However, there's no guarantee that a franchisee's specific location will see direct benefits from the advertising. The franchisee can request an annual statement of the fund's operations, but these statements are not required to be audited. The fund is intended to be perpetual, but Bb.Q Chicken can terminate it at any time, ensuring all monies are spent on advertising or returned to contributors on a pro rata basis.