For what purposes can Bombs Away Franchising use the Marketing Fund?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
sing.** Bombs Away Franchising may use any marketing materials or campaigns developed by or on behalf of Franchisee, and Franchisee hereby grants an unlimited, perpetual, royalty-free license to Bombs Away Franchising for such purpose.
- 9.3 Marketing Fund. Bombs Away Franchising may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level. If Bombs Away Franchising has 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; and administrative and overhead expenses related to the Marketing Fund (including the compensation of Bombs Away Franchising's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
- (c) Discretion. Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee.
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 on various levels. Bombs Away Franchising can use the fund for materials, programs, and campaigns at the local, regional, national, and international levels, including related overhead expenses.
Specifically, Bombs Away has the discretion to use the Marketing Fund for development and placement of advertising and promotions, sponsorships, contests and sweepstakes, and the development of décor, trade dress, Marks, and/or branding. The fund can also cover the development and maintenance of brand websites, social media, internet activities, e-commerce programs, and search engine optimization.
Additionally, Bombs Away may use the Marketing Fund for 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. These expenses can include compensation for Bombs Away's employees working on marketing and for accounting, bookkeeping, reporting, legal, and other expenses related to the Marketing Fund.
Prospective franchisees should note that Bombs Away has sole discretion over how the Marketing Fund is spent, and these expenditures do not need to be proportionate to individual franchisee contributions or provide direct benefits to each franchisee. Bombs Away also has no fiduciary duty regarding the Marketing Fund.