What does SMF stand for in the Brueggers Bagels FDD?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Brueggers Bagels' 2025 Franchise Disclosure Document, the acronym 'SMF' refers to the Brand Marketing Fund. This fund is a common pool of money used for advertising and promotion, to which Brueggers Bagels franchisees contribute. Brueggers Bagels manages this fund.
Brueggers Bagels may use the Brand Marketing Fund to cover various costs and expenses related to advertising, marketing, and public relations. These expenses can include creating advertising materials, sponsoring events, maintaining websites and social media, and paying for endorsement contracts. The fund can also cover salaries and expenses for employees working on these activities, as well as professional and administrative fees.
Brueggers Bagels states that they will seek advice from franchisees regarding the creative concepts and media used for programs financed by the SMF, but they retain the final authority on all programs financed by the SMF. The document specifies that the goal of the SMF is to maximize general public recognition and acceptance of Brueggers Bagels outlets. Brueggers Bagels is not obligated to make expenditures for individual franchisees equivalent to their contribution or ensure that any particular franchisee benefits directly or proportionally from the SMF's expenditures. A franchisee's obligation to contribute to the SMF is not reduced or eliminated if they do not derive a specific benefit, nor is it affected by the failure of other franchisees to contribute.