For what purpose will the Chem Dry Brand Marketing Fund (BMF) NOT be used?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
We may also deposit marketing, promotional and other payments we receive from suppliers into the BMF. CDI will design, direct and administer the BMF and will disburse the BMF to pay for marketing, advertising, promotional, public relations, and other similar activities 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, including salaries, incurred for activities supported by the BMF by both in-house marketing and third-party marketing. Any amounts in the Marketing Fund 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. We may loan funds to the BMF for its authorized activity, with or without interest being charged, and cause repayment of the amounts from available funds. The BMF will not be used for the solicitation of new franchisees.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 37–45)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Brand Marketing Fund (BMF) is explicitly not used for the solicitation of new franchisees. The BMF is designed to support the Chem Dry system and its franchisees through various marketing and promotional activities.
The BMF is used to pay for marketing, advertising, promotional, public relations, and other similar activities intended to benefit the Chem Dry system and all franchised and company-owned locations. These activities 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. The fund can also cover administrative overhead expenses, including salaries, incurred for activities supported by the BMF by both in-house marketing and third-party marketing.
Any unspent funds in the BMF at the end of each fiscal year will remain in the fund, although they may be used to pay taxes associated with those unspent amounts. Chem Dry may also loan funds to the BMF for its authorized activities, with or without interest, and ensure repayment from available funds. Franchisees should be aware that while they contribute to the BMF, Chem Dry does not guarantee that any individual franchisee will receive a benefit directly proportionate to their contribution.