What are some examples of costs that the Bft Fund may be used to pay for?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
is as of the Effective Date, Franchisor will provide at least sixty (60) days' written notice of such increase in the Fund Contribution, subject to the Marketing Expenditure Cap (as defined in Section 9.2.G).
- B. The Fund is administered by Franchisor (or its affiliates) with the assistance and advice provided by a Fund advisory committee (the "FAC") pursuant to a charter agreement among Franchisor and the members of the FAC, which serves in an advisory capacity only. The FAC represents BFT Studio franchisees and advises Franchisor with regard to all advertising, marketing and public relations programs and activities financed by the Fund, including the creative concepts, materials and endorsements used and the geographic market, media placement and allocation. The FAC is purely advisory in nature and has no operational or ultimate decision-making authority.
- C. Franchisee agrees that the Fund may be used to pay the costs of preparing and producing associated materials and programs as Franchisor may determine, including, without limitation, the use of Social Media (as defined in Section 9.3 below); formulating, developing and implementing advertising and promotional campaigns; video, audio and written advertising materials employing advertising agencies; sponsorship of sporting, charitable or similar events; administering regional, national and multi-regional advertising programs including purchasing direct mail and other media advertising, website development/operation and to pay Internet, Intranet, URL, 800 or similar number, and other charges, fees and/or expenses, including employing advertising agencies to assist with marketing efforts; supporting public relations, market research and other advertising, promotional and marketing activities;
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the marketing fund can cover various costs related to advertising, marketing, and public relations. Specifically, the fund may be used for preparing and producing associated materials and programs, including social media initiatives. It also covers the formulation, development, and implementation of advertising and promotional campaigns, including video, audio, and written advertising materials, and engaging advertising agencies.
Additionally, the Bft fund can be used for sponsoring sporting, charitable, or similar events, administering regional, national, and multi-regional advertising programs (including direct mail and media advertising), and website development and operation. It also covers internet-related charges, fees, and expenses, including employing advertising agencies for marketing efforts. The fund supports public relations, market research, and other advertising, promotional, and marketing activities.
Furthermore, the Bft fund can be used to cover the reasonable costs of administering the fund itself, including accounting expenses and the salaries and fringe benefits of Bft's employees involved in the fund's administration, creation, development, and implementation of campaigns. The FDD also states that Bft, its affiliates, and their employees can be compensated by the Fund for providing goods, services, and materials, provided the compensation is reasonable. All taxes incurred in connection with the Fund are the sole responsibility of the Fund.