How will the Big Frog Custom T Shirts More Brand Fund be administered?
Big_Frog_Custom_T_Shirts_More Franchise · 2024 FDDAnswer from 2024 FDD Document
You are required to contribute one and one half percent (1.5%) of your monthly Gross Sales to the Brand Fund. We or our designee will direct all programs financed by the Brand Fund, with sole control over the creative concepts, materials and endorsements, and the geographic, market, media placement and allocation and any Internet or intranet websites, networks or communities it operates or participates in, or which requires your participation.
We may use the Brand Fund for the creation, production and placement of commercial advertising; agency costs and commissions; creation and production of video, audio and written advertisements; administering multi-regional advertising programs, direct mail and other media advertising; in-house staff assistance and
related administrative costs; local and regional promotions; engaging one or more public relations firms or conducting our own public relations campaigns; market research; and other advertising and marketing activities, including participating at trade shows. Marketing may be placed in local, regional, national or international media of our choice, including but not limited to print, direct mail, radio, television or Internet. 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.
The Brand Fund may periodically furnish you with samples of advertising, marketing and promotional formats and materials at its cost. We will furnish multiple copies of such materials to you at our direct cost of producing them, plus any related shipping, handling and storage charges. Because we do not have this fund audited, audited financial statements are not available to franchisees. We will provide an annual accounting for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year upon written request.
The Brand Fund will be administered by us or designees, in our discretion, and we may use a professional advertising agency or media buyer to assist us. The Brand Fund will be in a separate bank account, commercial account or savings account. Your contribution to the Brand Fund will be in addition to all other advertising requirements set out in this Item 11.
We may spend, on behalf of the Brand Fund, in any fiscal year an amount greater or less than the aggregate contribution of all Stores to the Brand Fund in that year, and the Brand Fund may borrow from us or others to cover deficits or invest any surplus for future use. All interest earned on monies contributed to the Brand Fund will be used to pay advertising costs before other assets of the Brand Fund are expended. We will prepare an annual statement of monies collected and costs incurred by the Brand Fund and furnish the statement to you upon written request.
The Brand Fund and its earnings shall not otherwise inure to our benefit except that any resulting technology and intellectual property shall be deemed our property.
We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Brand Fund contributions for advertising that is principally a solicitation for the sale of franchises, but we reserve the right to include a notation in any advertisement indicating "Franchises Available" or similar phrasing.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–26)
What This Means (2024 FDD)
According to Big Frog Custom T Shirts More's 2024 Franchise Disclosure Document, the Brand Fund will be administered by Big Frog Custom T Shirts More or its designees, at their discretion. The document specifies that Big Frog Custom T Shirts More may use a professional advertising agency or media buyer to assist them in this role. The Brand Fund itself will be held in a separate bank account, commercial account, or savings account. Franchisees are required to contribute 1.5% of their monthly Gross Sales to the Brand Fund, which is in addition to any other advertising requirements.
Big Frog Custom T Shirts More has sole control over the creative concepts, materials, endorsements, and the geographic, market, and media placement of advertising programs financed by the Brand Fund. They also control any Internet or intranet websites, networks, or communities the fund operates or participates in, which may require franchisee participation. The Brand Fund can be used for various advertising and marketing activities, including commercial advertising, agency costs, video and audio advertisements, multi-regional advertising programs, direct mail, in-house staff assistance, local and regional promotions, public relations, market research, and trade show participation.
Big Frog Custom T Shirts More may spend more or less than the aggregate contributions to the Brand Fund in any fiscal year and may borrow or invest funds to cover deficits or surpluses. All interest earned on the Brand Fund will be used to pay advertising costs before other assets are expended. While audited financial statements for the Brand Fund are not available, Big Frog Custom T Shirts More will provide an annual accounting of how the Brand Fund proceeds were spent for the previous year upon written request. The Brand Fund and its earnings will not benefit Big Frog Custom T Shirts More, except that any resulting technology and intellectual property will be deemed their property. Big Frog Custom T Shirts More is not obligated to spend any amount on advertising in the franchisee's specific geographical area and reserves the right to include a "Franchises Available" notation in any advertisement.