What does the Browns Chicken franchisee authorize Brown to collect for remission to the Advertising Fund?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee authorizes Brown to collect for remission to the Advertising Fund any advertising monies or credits offered by any supplier to Franchisee based upon purchases by Franchisee.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the franchisee authorizes Brown's Chicken to collect any advertising monies or credits offered by any supplier to the franchisee based upon the franchisee's purchases for remission to the Advertising Fund. This means that if a supplier provides advertising funds or credits to a Browns Chicken franchisee due to their purchases, the franchisee allows Browns Chicken to collect these funds and deposit them into the Advertising Fund.
The Advertising Fund is used by Browns Chicken to finance advertising programs. Browns Chicken has sole discretion over the advertising programs financed by the fund, including the creative concepts, materials, endorsements, geographic, market, and media placement. The fund can be used to cover the costs of creating, administering, and producing advertising materials, maintaining an electronic commerce Website, purchasing media advertising, and supporting public relations and marketing activities.
Browns Chicken will provide franchisees with approved advertising materials at the direct cost of producing them. A statement of monies collected and costs incurred by the Advertising Fund will be prepared annually by Browns Chicken and furnished to the franchisee upon written request. This arrangement ensures that advertising funds or credits from suppliers are directed into the collective advertising efforts managed by Browns Chicken, potentially benefiting all franchisees through increased brand awareness and marketing initiatives.