factual

How does Brown's Chicken notify Browns Chicken franchisees of the amount to be contributed to the Advertising Fund?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee shall pay to the Advertising Fund, as hereinafter provided, such amount as may be designated by Brown from time to time by written notice to Franchisee, not to exceed four percent (4%) of the Gross Sales (as hereinafter defined) of the Store. The Advertising Fund contribution shall be paid by Franchisee on Gross Sales for each Monday through Sunday weekly period together with the royalty fee as set forth in Paragraph l9.A of this Agreement. Franchisee's payments to the Advertising Fund shall be made by electronic transfer or automatic debit from Franchisee's bank account to the Advertising Fund account, as set forth in Paragraph 19.F. below.

Brown shall direct all advertising programs financed by the Advertising Fund, with sole discretion over the creative concepts, materials and endorsements used therein, and the geographic, market and media placement and allocation thereof. Franchisee agrees that the Advertising Fund may be used to meet any and all costs of formulating, administering, maintaining, directing, preparing and producing regional, multi-regional or local advertising materials, programs and public relations activities, including, without limitation, the costs of producing video, audio and written advertising materials; electronic media, developing, implementing, and maintaining an electronic commerce Website and/or related strategies; administering multi-regional advertising programs; purchasing trade journal, direct mail and other media advertising; and employing advertising agencies; supporting public relations, market research and marketing activities; and providing advertising and marketing materials and menus to BROWN'S Stores. The Advertising Fund shall furnish Franchisee with approved advertising materials at its direct cost of producing such advertising materials.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to Browns Chicken's 2025 Franchise Disclosure Document, Browns Chicken franchisees will receive written notice specifying the amount to be contributed to the Advertising Fund. This amount is determined by Browns Chicken and will not exceed four percent of the store's Gross Sales.

The Advertising Fund contributions are to be paid weekly, covering sales from Monday through Sunday, and are due along with the royalty fee. These payments are facilitated through electronic transfer or automatic debit from the franchisee's bank account directly to the Advertising Fund account.

Browns Chicken has sole discretion over the advertising programs financed by the Advertising Fund, including creative concepts, materials, endorsements, and the placement and allocation of advertising. The Advertising Fund can be used for various advertising and marketing costs, such as producing materials, electronic media, website maintenance, and employing advertising agencies. Franchisees are furnished with approved advertising materials at the direct cost of production.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.