What is the relationship between the trademarks licensed to a Bombs Away franchisee in Item 13 and the franchisee's obligations regarding marketing and advertising in Item 9?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 9. MARKETING
- 9.1 Approval and Implementation. Franchisee shall not conduct any marketing, advertising or public relations activities (including websites, online advertising, social media marketing or presence, and sponsorships) that have not been approved by Bombs Away Franchising. Bombs Away Franchising may (but is not obligated to) operate all "social media" accounts on behalf of the System, or it may permit franchisees to operate one or more accounts. Franchisee must comply with any System Standards regarding marketing, advertising, and public relations, include any social media policy that Bombs Away Franchising may prescribe. Franchisee shall implement any marketing plans or campaigns determined by Bombs Away Franchising.
- 9.2 Use By Bombs Away Franchising. 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
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the trademarks (referred to as "Marks") licensed to the franchisee are central to the marketing and advertising obligations outlined in the franchise agreement. Bombs Away retains significant control over how its brand and trademarks are used in marketing efforts.
The agreement specifies that franchisees must have all marketing, advertising, and public relations activities approved by Bombs Away Franchising. This includes online presence, social media, and sponsorships. Bombs Away may operate social media accounts on behalf of the system or permit franchisees to do so, but franchisees must adhere to Bombs Away's system standards and social media policies. Bombs Away also has the right to use any marketing materials developed by the franchisee.
Bombs Away may establish a Marketing Fund to promote the system, using contributions from franchisees for advertising and public relations. Franchisees are also required to spend a minimum of 5% of gross sales each month on marketing, and Bombs Away has the discretion to determine what activities qualify as marketing. Additionally, Bombs Away may establish market advertising cooperatives, requiring franchisee participation with dues between 1% and 5% of gross sales, further integrating the use of the licensed trademarks into coordinated marketing efforts.