What is the purpose of the Brueggers Bagels marketing contribution?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3. "Brand Marketing Fund" means the common pool of funds for advertising and promotion to which Bruegger's Bagels franchisees contribute and which we administer as provided in Section 14.
We may use the SMF to pay various costs and expenses as we determine in our sole discretion, including, without limitation: preparation and production of video, audio, written, online and mobile advertising materials; production of promotional materials; sponsorship of sporting, charitable, or similar events; design, establishment, and maintenance of web sites, search rankings, social media profiles and other online and mobile presence; endorsement contracts; reasonable salaries and expenses of our and our affiliates' employees who work on advertising, marketing, public relations materials, programs, activities or promotions prepared, planned or undertaken on behalf of the SMF; professional fees and administrative costs and overhead that we or our affiliates incur in activities reasonably related to the administration and activities of the SMF (including accounting fees, legal fees, and interest on monies borrowed by the SMF); implementation of advertising programs, including, without limitation, purchasing direct mail and other media advertising and employing advertising agencies to assist us; and other public relations, marketing, consumer research, and promotional activities, including testing and test marketing programs, fulfillment charges, and development and implementation and testing of trade dress and design prototypes.
- 14.4.2. We will seek the advice of Bruegger's franchisees by formal or informal means with respect to the creative concepts and media used for programs financed by the SMF.
We retain the final authority on all programs financed by the SMF.
We have the right to change or dissolve the SMF.
- 14.4.3. You acknowledge that the SMF and any earnings thereon will be used to maximize general public recognition, acceptance, and patronage of Bruegger's outlets, and that we are not obligated, in administering the SMF, to make expenditures for you which are equivalent or proportional to your contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures by the SMF.
Your failure to derive any such benefit will not serve as a basis for a reduction or elimination of your obligation to contribute to the SMF.
The failure (whether
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the Brand Marketing Fund is a common pool of funds used for advertising and promotion, to which Brueggers Bagels franchisees contribute. Brueggers Bagels administers this fund as detailed in Section 14 of the agreement.
Brueggers Bagels may use the fund to cover various costs and expenses at their discretion. These include creating advertising materials for different media, producing promotional materials, sponsoring events, managing online presence (websites, search rankings, social media), securing endorsement contracts, and covering salaries and expenses for employees working on marketing and advertising. The fund can also be used for professional and administrative fees related to managing the fund, implementing advertising programs, and conducting market research and promotional activities.
Brueggers Bagels will seek advice from franchisees regarding the creative concepts and media used for programs financed by the Brand Marketing Fund, but Brueggers Bagels retains the final authority on all programs financed by the SMF. The goal of the fund is to maximize public recognition, acceptance, and patronage of Brueggers Bagels outlets. Franchisees are not guaranteed expenditures equivalent to their contribution or direct benefits proportional to their contribution. A franchisee's obligation to contribute to the Brand Marketing Fund is not reduced or eliminated if they do not directly benefit from the fund's expenditures or if other franchisees fail to contribute.