How much did Pepsi pay into the Browns Chicken Advertising Fund during the fiscal year 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
though we reserve the right to do so in the future.
There are currently 2 purchasing arrangements for franchisees. One is with Pepsi, which is an approved fountain beverage product supplier. Under the Pepsi agreement, you will have the right to purchase Pepsi fountain syrups from Wilkens at then-current published chain account prices, which prices are subject to change from time to time. The Pepsi agreement provides that Pepsi will pay a rebate into the Brown Advertising Fund based on Franchisees' purchases of Pepsi products. During the fiscal year 2024, Pepsi paid Brown rebates totaling $1,637 which was retained by Brown in its general operating budget.
A second purchasing arrangement is with Dr. Pepper/Seven Up, Inc., which is an approved fountain beverage product supplier. During the fiscal year 2024, Dr. Pepper/Snapple paid Brown rebates totaling $308.25,
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, Pepsi does contribute to the Browns Chicken Advertising Fund through a rebate program based on franchisee purchases of Pepsi products. However, during the fiscal year 2024, the rebates from Pepsi, totaling $1,637, were retained by Browns Chicken in its general operating budget, not specifically deposited into the advertising fund. In contrast, Dr. Pepper/Snapple paid rebates totaling $308.25, which was deposited into the Brown Advertising Fund during the same period.
This distinction is important for prospective franchisees to understand. While Pepsi contributes financially based on franchisee purchases, those funds may not directly benefit the advertising fund that supports marketing and promotional activities for the Browns Chicken brand. Instead, these funds are used for general operations. The advertising fund is supported by other vendors, such as Dr. Pepper/Snapple.
It is important for potential franchisees to inquire about the allocation of vendor rebates and how the advertising fund is managed. Understanding the specific sources and uses of funds within the advertising fund can provide greater transparency into the marketing support franchisees can expect and the overall financial health of the Browns Chicken franchise system. Franchisees should also ask about the criteria used to determine how vendor rebates are allocated between the general operating budget and the advertising fund.