If the Chicken Guy Brand Fund is established, what is the franchisee's obligation regarding participation in marketing programs?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
ng 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, promot
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, if the Brand Fund is established, franchisees must participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Fund. Chicken Guy! plans to establish a Brand Fund, and when it 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 for purposes that they believe will enhance, protect, and increase public recognition and perception of the Chicken Guy! system and proprietary marks. This includes directing all programs that the Brand Fund finances and having sole control over the creative concepts, materials, endorsements, and their geographic, market, and media placement and allocation.
This means that while franchisees are required to contribute to the Brand Fund, Chicken Guy! has complete control over how those funds are spent and the marketing strategies employed. Franchisees do not have direct input on these decisions but are obligated to participate in the programs implemented by the Brand Fund. This is a fairly typical structure in franchising, where the franchisor manages marketing efforts to maintain brand consistency and maximize impact across the entire system.