How is the Central Bark Doggy Day Care brand fund used?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
rposes:
| December 31, | 2024 | 2023 | 2022 |
|---|---|---|---|
| Escrowed for initial franchise fee | $ 16,504 | $ 23,845 | $ 44,800 |
| Advertising expenses | 183,975 | ||
| Total | $ 16,504 | $ 23,845 | $ 228,775 |
7. Brand fund receivable and liability
In addition to the monthly royalty and service fee, each franchise is required to make a brand fund contribution equal to the greater of 2% of monthly gross sales, per terms of the franchise agreement, or a $500 monthly minimum fee. Such funds received are treated as a liability until disbursed. The fund is used to benefit all Central Bark facilities through advertising and promotional activities. The funds are maintained in a separate account and accounted
Source: Item 1 — Franchisee shall have paid all Royalty Fees, advertising fund contributions, LAC contributions, amounts owed for purchases by Franchisee from Franchisor, or Franchisor's affiliates, and all other amounts owed to Franchisor, Franchisor's affiliates, and third-party creditors, and shall have submitted to Franchisor all required reports and statements; (FDD pages 106–233)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, franchisees are required to contribute to a brand fund. This contribution is the greater of 2% of monthly gross sales or a $500 monthly minimum fee, as per the terms of the franchise agreement. These funds are treated as a liability until they are disbursed.
The primary purpose of the brand fund is to benefit all Central Bark Doggy Day Care facilities through advertising and promotional activities. This suggests that the fund is used to enhance brand awareness and attract customers to the various franchise locations.
The funds collected for the brand fund are maintained in a separate account, ensuring they are accounted for independently from Central Bark Doggy Day Care's general operating fund. Additionally, the brand fund receivable, which represents the amount owed by franchisees for December sales, is subject to management's assessment for potential bad debts, although realization losses are estimated to be immaterial.