Under what conditions can the Brand Fund be dissolved by Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Franchise Agreement, we (or our affiliates or designees) may, but are not required to, provide the following assistance and services to you:
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- Maintain and administer the Brand Fund. We may dissolve the Brand Fund upon written notice (Franchise Agreement – Section 11).
You must pay $1,000 per year to the Brand Fund for each Beverly Ann's Franchise you own and $200 per year for each piece of Additional
The amount of the Brand Fund contribution may also be increased at any time upon super-majority (75%) of the Ad Council (which is defined below) and upon 30 days' notice to you of the increase.
We do not guarantee that advertising expenditures from the Brand Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all.
We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We may use the Brand Fund for local, regional or national marketing, and any other purpose to promote the Beverly Ann's brand. During our most recent fiscal year ended December 31, 2024, we did not collect and Brand Fund fees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 37–43)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie may dissolve the Brand Fund by providing written notice to franchisees. This means that Beverly Anns Cookie has the discretion to discontinue the Brand Fund, which is used for advertising and marketing the Beverly Anns Cookie brand.
For a prospective franchisee, this implies that the advertising and marketing support provided through the Brand Fund could be terminated at any time with written notice. While the Brand Fund is active, franchisees must contribute $1,000 per year for each franchise they own and $200 per year for each piece of Additional Equipment they operate. These amounts can be increased annually by up to 10% at Beverly Ann's Cookie's discretion, or at any time with a super-majority (75%) approval of the Ad Council and 30 days' notice.
It is important to note that Beverly Anns Cookie does not guarantee that advertising expenditures from the Brand Fund will directly benefit any franchisee, and they are not obligated to spend any amount on advertising in a franchisee's specific geographical area. The funds can be used for local, regional, or national marketing to promote the Beverly Anns Cookie brand. During the fiscal year ending December 31, 2024, Beverly Anns Cookie did not collect any Brand Fund fees.