Can Better Blend use the Marketing Fund for public relations materials?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level. If BBF has established a Marketing Fund:
- (a) Account. BBF is not required to hold the Marketing Fund Contributions in a bank account separate from BBF's other accounts.
- (b) Use. BBF shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level) for Better Blend, and related overhead. The foregoing includes such activities and expenses as BBF reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of BBF's employees working on marketing and for accounting, bookkeeping, reporting, legal, collections, and other expenses related to the Marketing Fund).
- (c) Discretion.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend has the authority to use the Marketing Fund for public relations materials. Specifically, the FDD states that the Marketing Fund can be used for marketing, advertising, and public relations materials, programs, and campaigns at the local, regional, national, and/or international level.
This includes activities and expenses that Better Blend deems reasonable, such as the development and placement of advertising and promotions, sponsorships, contests and sweepstakes, development of décor, trade dress, Marks, and/or branding, development and maintenance of brand websites, social media, internet activities, e-commerce programs, search engine optimization, market research, public relations, media or agency costs, trade shows and other events, printing and mailing, and administrative and overhead expenses related to the Marketing Fund, including employee compensation and accounting expenses.
Better Blend retains sole discretion over how the Marketing Fund is spent, and franchisees acknowledge that these expenditures do not need to be directly proportionate to their contributions or provide any direct benefit to them. Better Blend also has no fiduciary duty regarding the Marketing Fund. This means that while franchisees contribute to the Marketing Fund, Better Blend ultimately decides how those funds are allocated and spent on marketing and public relations activities for the Better Blend brand.