How does the Pepsi agreement benefit the Browns Chicken Advertising Fund?
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, the Pepsi agreement directly benefits the Browns Chicken Advertising Fund through a rebate program. Under this agreement, Browns Chicken franchisees have the right to purchase Pepsi fountain syrups from Wilkens at chain account prices, which are subject to change. Pepsi, in turn, pays a rebate into the Browns Chicken Advertising Fund based on the franchisees' purchases of Pepsi products.
During the fiscal year 2024, Pepsi paid rebates totaling $1,637. However, these funds were retained by Browns Chicken in its general operating budget, rather than being directly deposited into the advertising fund. In contrast, Dr. Pepper/Snapple paid rebates totaling $308.25, which was deposited into the Browns Chicken Advertising Fund during the same period.
This arrangement means that the Browns Chicken Advertising Fund receives direct financial support from beverage suppliers based on franchisee purchases. While the $1,637 from Pepsi was used for general operations in 2024, the FDD indicates that the $308.25 from Dr. Pepper/Snapple was deposited directly into the advertising fund. Prospective franchisees should inquire whether the policy of retaining Pepsi rebates for the general operating budget is ongoing, as this could impact the funds available for advertising and marketing initiatives that benefit all franchisees.