Is a Chicken Guy franchisee required to participate in all advertising programs instituted by the Brand Fund?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate in all advertising, marketing, promotions, research and public relations programs instituted by the 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.
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 are required to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Fund. When the Brand Fund is established, franchisees must contribute 2% of weekly Gross Sales to the Brand Fund, up to a maximum annual contribution of $30,000. Chicken Guy retains sole discretion over the use of the Brand Fund monies to enhance public recognition of the Chicken Guy system and proprietary marks.
Chicken Guy directs all programs financed by the Brand Fund, with sole control over creative concepts, materials, endorsements, and their placement. The Brand Fund can be used for various programs, including developing advertising materials, market research, website maintenance, and public relations. Vendors and suppliers may also contribute to the Brand Fund.
Chicken Guy has the right 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. Currently, the Weekly Marketing Obligation is 4% of Gross Sales, all of which is allocated to Local Store Marketing. When the Brand Fund is established, the Weekly Marketing Obligation will 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 Local Store Marketing.