What is the purpose of the Brand Development Fund for Bb.Q Chicken franchisees?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2.6 In-store materials consisting of fixtures or equipment; and
- 8.2.7 Seminar and educational costs and expenses of your employees.
Notwithstanding the foregoing, you must participate in any promotional campaigns, prize contests, special offers and other promotions we specify. We may designate that these promotions are regional in nature, which means not every System franchisee is required to participate.
8.3 Brand Development Fund
We administer a Brand Development Fund for the purpose of advertising the System on a regional or national basis (the "Brand Development Fund"). You agree to contribute to the Brand Development Fund as described in Section 4.3 above. You agree that the Brand Development Fund shall be maintained and administered by us or our designee as follows:
- 8.3.1 We shall direct all advertising programs and shall have sole discretion to approve or disapprove the creative concepts, materials and media used in such programs and the placement and allocation thereof. You agree and acknowledge that the Brand Development Fund is intended to maximize general public recognition and acceptance of the Marks and enhance the collective success of all Franchised Businesses operating under the System. We may use monies from the Brand Development Fund to present refresher training programs, to present an annual meeting of our franchisees, or to conduct mystery shops. We shall, with respect to Franchised Businesses operated by us, contribute to the Brand Development Fund generally on the same basis as you. 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 used for advertising the Bb.Q Chicken system on a regional or national level. The fund is administered by Bb.Q Chicken, who has the sole discretion to approve advertising concepts, materials, and media. The purpose of the Brand Development Fund is to maximize public recognition and acceptance of the Bb.Q Chicken brand and enhance the success of all franchise businesses operating under the system. Bb.Q Chicken may also use the fund to present refresher training programs, conduct annual franchisee meetings, or conduct mystery shops. Bb.Q Chicken contributes to the fund for their own franchised businesses on the same basis as other franchisees.
The FDD specifies how the Brand Development Fund may be used. It can cover the costs of creating and running advertising campaigns across various media, including television, radio, magazines, newspapers, direct mail, billboards, and internet marketing. Public relations activities and the employment of advertising agencies can also be paid for through the fund. Additionally, the fund can cover the costs of Bb.Q Chicken personnel and other departmental expenses related to advertising that is managed internally.
Bb.Q Chicken franchisees should note that Bb.Q Chicken is not obligated to ensure that expenditures from the Brand Development Fund are equivalent or proportionate to each franchisee's contribution, or that any particular franchisee benefits directly or pro rata from advertising placement. A statement of the Brand Development Fund's operations will be prepared annually by Bb.Q Chicken and made available to franchisees upon request, though this statement may be unaudited. Any money remaining in the fund at the end of the year will carry over to the next year. While the fund is intended to be perpetual, Bb.Q Chicken can terminate it, but only after all monies have been spent on advertising or promotional purposes, or returned to the contributing franchisees and company-operated businesses.
Bb.Q Chicken can be reimbursed from the Brand Development Fund for reasonable expenses in managing the fund, but this reimbursement cannot exceed 15% of the fund's total. The Brand Development Fund is operated solely as a way to collect and spend the Brand Development Fees. The Brand Development Fund and its earnings shall not benefit Bb.Q Chicken except that any resulting technology or intellectual property shall be deemed their property.