Can Chicken Guy modify the amount a franchisee contributes to the Brand Fund?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
mit proof of such grand opening advertising expenditures to Chicken Guy.
B. Contributions/Expenditures by Franchisee. During the term of this Agreement, Franchisee shall have a weekly marketing obligation ("WMO") in an amount up to 5% of the Gross Sales of the Franchised Resta
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the ability to modify the amount a franchisee contributes to the Brand Fund. The franchisee is required to contribute the amount specified in the Data Sheet, up to a maximum annual contribution of $30,000 during each of Chicken Guy's fiscal years. However, this amount can be modified by Chicken Guy as per Section 9.B of the agreement.
Chicken Guy retains sole discretion over the use of the Brand Fund, ensuring that the monies are used to enhance and protect the System and Proprietary Marks, and to improve public recognition. Restaurants operated by Chicken Guy and its affiliates contribute to the Brand Fund on the same basis as comparable franchisees, ensuring equitable participation.
This provision allows Chicken Guy flexibility in adjusting contributions to the Brand Fund, which could be influenced by factors such as market conditions, the need for increased advertising efforts, or changes in the overall marketing strategy. For a prospective franchisee, this means that the required contribution to the Brand Fund could change over time, potentially impacting their operating costs and overall profitability. It is important for franchisees to stay informed about any modifications to the Brand Fund contribution and to understand the rationale behind these changes.