Where can I find the exact amount and allocation of advertising fees for a Chicken Guy franchise?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, the exact amount and allocation of advertising fees are detailed in Section 9 and the attached Data Sheet of the Franchise Agreement. Franchisees are required to spend or contribute to advertising efforts. As of the effective date of the agreement, franchisees have a weekly marketing obligation (WMO) of up to 5% of gross sales, with the initial WMO set at 4% of gross sales, which must be spent on local store marketing.
Chicken Guy retains the right to modify the WMO, reallocating it among the Brand Fund, a Regional Advertising Fund (or a Regional Co-op), and/or local store marketing, provided written notice is given to the franchisee. Additionally, franchisees are obligated to create a Grand Opening Required Spending Plan and spend at least $10,000 on grand opening advertising during the 30 days before opening and 60 days after opening.
The FDD also mentions the possibility of Chicken Guy establishing Regional Advertising Funds, where franchisees would contribute an amount specified in the attached Data Sheet, as modified by Chicken Guy. Chicken Guy has sole discretion over advertising programs and activities financed by these funds. Franchisees should refer to Section 9 and the Data Sheet to understand their specific advertising obligations and how these funds are allocated.