What expenses related to the Brand Fund can be paid from the Buff City Soap Brand Fund?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
, gift certificates, gift cards, or vouchers sold or distributed by other Buff City Soap locations and include the related proceeds in Net Sales strictly in accordance with the Standards and further comply with Franchisor's policies related to such coupons, stored value cards, gift certificates, gift cards and vouchers set forth in the Manuals. Franchisee will not issue or offer any gift certificate, gift card, stored value card, customer loyalty or retention program without Franchisor's prior written approval. Franchisee will utilize a vendor approved by Franchisor or its Affiliates for gift card processing. Any coupon offer proposed by Franchisee must be approved by Franchisor in writing prior to being offered.
10. MARKETING.
(a) Brand Fund. Franchisor administers a Brand Fund for the creation and development of marketing, advertising, and related programs, campaigns and materials, including digital, print, Internet and Social Media, as well as the planning and purchasing of national, regional, and/or local advertising. Franchisee must contribute the Brand Fund Contribution to the Brand Fund as set forth in Section 4(c) of this Agreement. Franchisor may, at its sole option, increase the Brand Fund Contribution upon 60 days' prior notice to Franchisee, provided such increase will not exceed 4%, as further described in Section 10(d).
Franchisor will direct all initiatives related to the positioning of the Brand using the Brand Fund, including without limitation advertising and marketing programs (e.g. research methods, branding, creative concepts and materials, sponsorships, and endorsements used in connection therewith); selection of geographic and media markets; and media placement and the allocation thereof.
Franchisor may use the Brand Fund to pay the costs of research (including without limitation Product research and development, formulation development, Product design, labeling and packaging), agency of record services, market research (e.g. customer engagement with the Brand, including shop design and décor, uniform design, customer service techniques, customer research and focus groups) creation and production of video, audio, electronic, and written advertising and marketing programs; administration of regional, multi-regional, and national advertising and marketing programs, Product and customer research and surveys, and testing and related development activities; promotional events; purchasing and participating in online, Social Media, radio, television, and billboard advertising and programming; employing marketing, advertising and promotional agencies to assist therewith; conducting community relations activities; and supporting public relations, maintenance of the System websites, and online presence;
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, the Brand Fund is used for various marketing, advertising, and related program expenses. These include the creation and development of marketing and advertising materials across different media such as digital, print, internet, and social media. The fund also covers the planning and purchasing of advertising at the national, regional, and local levels.
Specifically, Buff City Soap may use the Brand Fund to cover the costs of research, including product research and development, formulation development, product design, labeling, and packaging. It also includes agency of record services and market research related to customer engagement, such as shop design, décor, uniform design, customer service techniques, and focus groups. The fund can be used for the creation and production of video, audio, electronic, and written advertising and marketing programs, as well as the administration of regional, multi-regional, and national advertising and marketing programs.
Furthermore, the Brand Fund can be used for product and customer research, surveys, testing, and related development activities, promotional events, and purchasing and participating in online, social media, radio, television, and billboard advertising and programming. Buff City Soap may also use the fund to employ marketing, advertising, and promotional agencies, conduct community relations activities, support public relations, maintain the System websites and online presence, and undertake other advertising, marketing, and promotional activities deemed appropriate for Buff City Soap makeries.
It is important to note that the Brand Fund will be accounted for separately from Buff City Soap's other funds and will not be used to defray general operating expenses. However, reasonable salaries, administrative costs, travel expenses, and overhead incurred in the administration of the Brand Fund and its programs, including collecting and accounting for contributions, can be paid from the Brand Fund. The Brand Fund operates as a conduit for collecting and expending contributions, and Buff City Soap does not act as a trustee or have a fiduciary duty to franchisees regarding the Brand Fund.