Who administers the Chem-Dry Brand Marketing Fund (BMF)?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
mum of $300 upon 30 days prior written notice from CDI to all FRANCHISEES. The separate BMF account is not a trust fund and CDI is not a fiduciary with regard to the separate BMF account or the monies on deposit therein.
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- We may deposit marketing, promotional and other payments we receive from suppliers or you into the BMF. CDI, not an advertising council, will administer the BMF and will disburse the BMF to pay for marketing, advertising, promotional, public relations, and other similar activities solely intended to benefit the System and all franchised and any company-owned locations. Those activities may include (without limitation) (a) market research, (b) marketing technology development and implementation, (c) customer service, loyalty and reward programs, (d) media purchases, (e) advertising production, (f) advertising and public relations agency fees and expenses, (g) product consumer-related research, and (h) creative services. We also may use the BMF to pay or reimburse us for our administrative overhead expenses incurred for activities supported by the BMF by both in-house marketing and third-party marketing. Any amounts in the BMF not spent at the end of each fiscal year will remain in the BMF, provided that amounts contributed to the BMF may be used to pay taxes associated with unspent amounts on deposit in the BMF.
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Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, Chem-Dry, Inc. (CDI) will administer the Brand Marketing Fund (BMF). Chem-Dry, not an advertising council, will disburse the BMF to pay for marketing, advertising, promotional, public relations, and other similar activities solely intended to benefit the Chem-Dry system and all franchised and any company-owned locations.
The activities funded by the BMF may include market research, marketing technology development and implementation, customer service, loyalty and reward programs, media purchases, advertising production, advertising and public relations agency fees and expenses, product consumer-related research, and creative services. Chem-Dry may also use the BMF to pay or reimburse for administrative overhead expenses incurred for activities supported by the BMF by both in-house marketing and third-party marketing.
Chem-Dry directs all activities and programs funded by the BMF with the assistance of a Chem-Dry Brand Marketing Fund Committee (the "Committee"). The Committee will be an advisory board comprised of franchisees and CDI corporate staff. While the BMF will not be audited, Chem-Dry will prepare an unaudited financial statement and a summary of expenditures (the "Annual Report") annually. This report will be provided to franchisees upon written request as Confidential Information.