Where can I find information about advertising obligations for a Chicken Guy franchise in the Franchise Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Gross Sales.** Gross Sales shall include all revenue from the sale of all food products, beverages and all other income of every kind and nature related to the Franchised Restaurant (including the redemption value of stored value gift cards and gift certificates when purchases are made) whether for cash or credit and regardless of collection in the case of credit, monies or credit received from the sale of food and merchandise, from tangible property of every kind and nature, promotional or otherwise, and for services performed from or at the Franchised Restaurant, including, but not limited to, such off-premises services as catering and delivery.
Gross Sales do not include sales taxes or other taxes collected from customers for transmittal to the appropriate taxing authority, promotional discounts and coupons, the value of any employee discounts provided to Franchisee's bona fide employees during the fiscal week in which the discounts are provided, all proceeds from the sale of gift certificates or stored value cards, customer refunds made in good faith to customers, or the sale of equipment used in the operation of the Franchised Restaurant.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 23–25)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, details regarding advertising obligations can be found in Section 9 of the Franchise Agreement and the attached Data Sheet. Specifically, Section 9.F outlines the franchisee's responsibilities for advertising fees, including the amount to be spent or contributed and how these fees are allocated.
Furthermore, at least 30 days before opening the restaurant, the franchisee must submit a Grand Opening Required Spending Plan to Chicken Guy, detailing their proposal for grand opening advertising. This plan requires Chicken Guy's written consent before implementation, and Chicken Guy can request modifications to the plan. During the 30 days before opening and continuing for 60 days after opening, the franchisee must spend at least $10,000 on grand opening advertising.
Chicken Guy also collects, administers, and spends monies paid by franchised and company-operated restaurants for advertising purposes through the Brand Fund (when established) and any Regional Advertising Fund (if established). Franchisees can request guidelines for local advertising and promotion, but any local advertising and promotional materials purchased from a source other than Chicken Guy or its affiliates must be submitted for prior approval.