How often do Browns Chicken franchisees pay the Advertising Fund contribution?
Browns_Chicken Franchise · 2025 FDDAnswer 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.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, franchisees are required to make Advertising Fund contributions on a weekly basis. These contributions are calculated based on the Gross Sales for each Monday through Sunday period. The payment is due at the same time as the royalty fee, as outlined in Paragraph l9.A of the Franchise Agreement. Browns Chicken franchisees must remit their payments through electronic transfer or automatic debit from their designated bank account, as specified in Paragraph 19.F.
This weekly payment schedule ensures a consistent flow of funds into the Advertising Fund, which Browns Chicken uses to finance advertising programs. The contribution amount is determined by Browns Chicken, but it cannot exceed four percent (4%) of the Gross Sales of the store. This consistent payment schedule helps Browns Chicken manage and allocate resources for marketing and advertising initiatives effectively.
Failure to comply with the weekly payment schedule can result in penalties. According to the FDD, Browns Chicken may impose a penalty of $100 per day if the franchisee is late in paying the Advertising Fund contribution. This penalty starts accruing from the fifteenth day after the payment due date and continues until the default is resolved. This underscores the importance of adhering to the payment terms outlined in the Franchise Agreement to avoid additional costs.