What costs can the Browns Chicken Advertising Fund be used to meet?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the Advertising Fund can be used to cover a wide array of advertising and marketing expenses. Browns Chicken has sole discretion over the advertising programs financed by the fund.
Specifically, the fund may be used to cover the costs of formulating, administering, and maintaining regional, multi-regional, or local advertising materials, programs, and public relations activities. This includes producing video, audio, and written advertising materials, as well as electronic media. The fund can also be used for developing, implementing, and maintaining an electronic commerce Website and related strategies.
Further, the Browns Chicken Advertising Fund can be used for administering multi-regional advertising programs, purchasing trade journal and direct mail advertising, employing advertising agencies, supporting public relations, market research, and marketing activities, and providing advertising and marketing materials and menus to Browns Chicken stores. Franchisees will be furnished with approved advertising materials at the direct cost of producing them.
Browns Chicken clarifies that the Advertising Fund is not a trust, but contributions will be held for the benefit of the contributors and used only for the purposes described in the franchise agreement. The fund will be accounted for separately from Browns Chicken's other funds and will not be used to defray the company's general operating expenses, except for reasonable salaries, administrative costs, and overhead related to administering the fund and its advertising programs.