What is the definition of LSM in the context of Brueggers Bagels advertising?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Although likely to change, we presently allocate the Marketing Contribution as follows:
- We collect 50% of the Marketing Contribution (that is, 1.75% of your Gross Sales) for the SMF; and
- You must spend 50% of the Marketing Contribution (that is, 1.75% of your Gross Sales) on LSM.
Local Store Marketing. Although we presently require you to spend LSM funds directly, we reserve the right to collect and hold your funds for LSM. If we do so, we will seek your guidance on how those funds are to be spent; however, if you do not provide timely guidance, we will be free to direct the expenditure of the funds. There are different marketing needs in different types of markets; for example, Bakeries that operate in resort or vacation areas may need a different kind and volume of marketing than do Bakeries that operate in suburban areas or in cities.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, MANUALS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, LSM stands for local store marketing. Franchisees are required to spend a portion of their marketing contribution, specifically 1.75% of their gross sales, on LSM.
While franchisees presently spend LSM funds directly, Brueggers Bagels retains the right to collect and hold these funds. If Brueggers Bagels exercises this right, they will seek the franchisee's guidance on how the funds should be spent. However, if the franchisee does not provide timely guidance, Brueggers Bagels is free to direct the expenditure of the funds.
The FDD notes that different markets have different marketing needs. For example, Brueggers Bagels bakeries in resort or vacation areas may require a different type and volume of marketing compared to those in suburban areas or cities. This suggests that LSM strategies should be tailored to the specific location and customer base of each bakery.