Does Browns Chicken have sole discretion over the creative concepts used in advertising programs?
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.
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, Browns Chicken directs all advertising programs financed by the Advertising Fund and has sole discretion over the creative concepts and materials used. Browns Chicken also has sole discretion over endorsements, geographic placement, market placement, and media allocation.
This means that as a Browns Chicken franchisee, you will contribute up to 4% of your store's gross sales to the Advertising Fund. However, Browns Chicken maintains complete control over how these funds are used for advertising purposes. You will not have input regarding the advertising concepts or where the ads are placed.
While Browns Chicken will provide approved advertising materials to franchisees at cost, franchisees do not have control over the advertising content. Browns Chicken aims to maximize recognition of their Marks and patronage of Browns Chicken stores, but they are not obligated to ensure that advertising expenditures are proportionate to contributions from stores in any specific geographic area.