Who has sole discretion over the use of the Chicken Guy Brand Fund monies?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
e scheduled opening of the Franchised Restaurant and continuing for 60 days after the Franchised Restaurant first opens for business ("Grand Opening Period"), spend at least $10,000 to conduct grand opening advertising in authorized advertising media and for authorized expenditures (as defined in Section 9.F.). Within 10 days after the end of the Grand Opening Period, Franchisee shall submit 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 Restaurant as set forth in this Section 9 and in the attached Data Sheet. As of the Effective Date, Franchisee's WMO is 4% of the Gross Sales of the Franchised Restaurant; all of which must be spent on local store marketing in accordance with Section 9.F. Following written notice to Franchisee, Chicken Guy may increase and reallocate the WMO among the Brand Fund in accordance with Section 9.C., a Regional Advertising Fund (or a Regional Co-op) in accordance with Sections 9.D. and 9.E., and/or local store marketing.
C. Brand Fund.
- (1) Chicken Guy plans to establish the Chicken Guy! marketing and brand fund for the enhancement and protection of the System and the Proprietary Marks, and for the creation and development of advertising, marketing and public relations, research and related programs, activities and materials
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has sole discretion over the use of the Brand Fund monies. The Brand Fund is intended to enhance and protect the Chicken Guy system and its proprietary marks, as well as to develop advertising, marketing, public relations, research, and related programs.
Chicken Guy can use the Brand Fund monies for any purpose it deems will enhance and protect the system and proprietary marks and will improve and increase public recognition and perception of the system and proprietary marks. Chicken Guy (or its designee) directs all programs that the Brand Fund finances, with sole control over the creative concepts, materials, and endorsements used in those programs and their geographic, market, and media placement and allocation. Franchisees are required to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Fund.
Chicken Guy may utilize the Brand Fund for various programs, concepts, and expenditures, including the development and production of advertising materials, media placement, market research, premium items, website development, search engine optimization, customer surveys, and retention of advertising agencies. Chicken Guy will separately account for the Brand Fund, but is not required to segregate it from its other monies. The fund may hire employees for its administration, and Chicken Guy and its affiliates may be reimbursed for expenses directly related to the fund's marketing programs. Chicken Guy may spend more or less than the aggregate contribution in any fiscal year and may invest any surplus for future use. A statement of monies collected and costs incurred by the fund will be prepared annually and furnished to franchisees upon written request.