What are some examples of activities and expenses that the Bombs Away Marketing Fund can be used for?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
established a Marketing Fund:
- (a) Separate Account. Bombs Away Franchising shall hold the Marketing Fund Contributions from all franchisees in one or more bank accounts separate from Bombs Away Franchising's other accounts.
- (b) Use. Bombs Away Franchising 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), and related overhead. The foregoing includes such activities
and expenses as Bombs Away Franchising 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;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Marketing Fund is used for marketing, advertising, and public relations at the local, regional, national, and/or international level, as well as related overhead.
Specifically, the Marketing Fund can be used for 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, and search engine optimization.
Additionally, the fund may cover 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. This includes compensation for Bombs Away Franchising's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund.
Bombs Away retains sole discretion over how the Marketing Fund is spent, and these expenditures do not need to directly benefit each franchisee in proportion to their contributions. Franchisees should note that Bombs Away is not obligated to ensure all franchisees contribute to the fund at the same rate.