Besides the Brand Fund, what other advertising obligations might a Chicken Guy franchisee have?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
e Agreement, § 14.D.)
Advertising
Weekly Marketing Obligation
During the term of the Franchise Agreement, your Weekly Marketing Obligation will not exceed 5% of the Gross Sales of the Franchised Restaurant. We may allocate the Weekly Marketing Obligation at our discretion between the Brand Fund (when established), a Regional Advertising Fund (or Regional Coop) (if established), and/or your Local Store Marketing. Currently, your Weekly Marketing Obligation is 4% of Gross Sales of the Franchised Restaurant, all of which is allocated to your Local Store Marketing. When the Brand Fund is established, the Weekly Marketing Obligation shall consist of 2% of Gross Sales to the Brand Fund (subject to a maximum annual contribution of $30,000) and 2% of Gross Sales to your Local Store Marketing. We have the right, following written notice to you, to increase and reallocate the Weekly Marketing Obligation among the Brand Fund, a Regional Advertising Fund (or Regional Co-Op) and/or Local Store Marketing.
Brand Fund
We plan to establish the Chicken Guy! Brand Fund ("Brand Fund"). When established, you must contribute 2% of weekly Gross Sales of the Franchised Restaurant to the Brand Fund up to a maximum annual contribution of $30,000. We will have sole discretion to use the Brand Fund, and the monies in the Brand Fund, for any purpose that we believe will enhance, protect, and increase public recognition and perception of the System and Proprietary Marks. We will direct all programs that the Brand Fund finances, with sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. You must participate in all advertising, marketing, promotions, research and public relations programs instituted by the Brand Fund.
Among the programs, concepts, and expenditures for which we may utilize the Brand Fund monies are: (1) creative development and production of print ads, commercials, radio spots, point of purchase materials, direct mail pieces, door hangers, and other advertising and marketing materials; (2) creative development, preparation, production and placement of video, audio, and written materials and electronic media;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–34)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees have a Weekly Marketing Obligation that can be allocated between the Brand Fund, a Regional Advertising Fund (or Regional Co-op), and Local Store Marketing. Currently, the Weekly Marketing Obligation is 4% of Gross Sales, entirely allocated to Local Store Marketing.
When the Brand Fund is established, this obligation will shift to 2% of Gross Sales to the Brand Fund (up to a maximum of $30,000 annually) and 2% to Local Store Marketing. Chicken Guy retains the right to modify this allocation among the Brand Fund, Regional Advertising Fund/Co-op, and Local Store Marketing with written notice.
In addition to the Brand Fund, franchisees may be required to contribute to a Regional Advertising Fund or a Regional Co-op, if established in their area. The geographic scope of these regional entities will be determined by Chicken Guy based on restaurant locations and media reach. If a Regional Co-op is formed, its advertising spending will be decided by a majority vote of Chicken Guy restaurants within the co-op; however, Chicken Guy can assume decision-making authority if the members fail to agree on spending.