What are the advertising fee obligations for a Chicken Guy franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- **C.
Advertising Fees.** Franchisee also shall spend and/or contribute for advertising.
The exact amount of the advertising fees to be spent and/or contributed by Franchisee, and the allocation of the advertising fees, as of the date of this Agreement, is set forth in Section 9 and the attached Data Sheet.
- **D.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are required to spend and/or contribute to advertising. The exact amount and allocation of these advertising fees are detailed in Section 9 and the attached Data Sheet of the Franchise Agreement. These fees are intended to enhance recognition of the Chicken Guy brand and increase patronage at all Chicken Guy restaurants.
Chicken Guy has the discretion to direct all advertising, marketing, and public relations programs, including creative concepts, materials, and media placement. The advertising funds may cover various costs, such as video, audio, and written advertising materials, advertising agencies, and sponsorships. Chicken Guy also has the right to establish Regional Advertising Funds, and if one is established for the franchisee's area, the franchisee must contribute to it as specified in the Data Sheet, which may be modified by Chicken Guy.
Chicken Guy also reserves the right to suspend contributions to and operations of each fund, terminate any fund with 30 days' written notice, and defer or waive advertising fees under unique circumstances. On termination of a fund, all monies in the fund shall be spent for advertising and/or promotional purposes. Chicken Guy may transfer monies between the Brand Fund and any Regional Advertising Fund to maximize media effectiveness.
In addition to contributing to advertising funds, Chicken Guy may furnish franchisees with marketing, advertising, and promotional materials at the cost of production, plus shipping, handling, and storage charges. Franchisees are not allowed to modify these materials without prior written consent from Chicken Guy. Franchisees must also participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Fund.