Who has the sole discretion to use the Chicken Guy Brand Fund monies?
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, Chicken Guy has sole discretion to use the Brand Fund monies. Specifically, Chicken Guy can use the monies for any purpose that it believes will enhance, protect, and increase public recognition and perception of the System and Proprietary Marks. Chicken Guy also directs all programs that the Brand Fund finances, maintaining sole control over the creative concepts, materials, endorsements, and their placement.
This means that while franchisees contribute a percentage of their gross sales to the Brand Fund, they do not have direct control over how those funds are spent. Chicken Guy decides how the money is allocated and used for advertising, marketing, and public relations efforts. The FDD outlines examples of programs and expenditures for which the Brand Fund monies may be used, including the development of advertising materials, market research, website maintenance, and public relations activities.
Chicken Guy states that franchisees must participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Fund. This underscores the mandatory nature of these programs and the lack of franchisee input on the Brand Fund's usage. While vendors and suppliers may also contribute to the Brand Fund, the ultimate decision-making authority rests with Chicken Guy.
Chicken Guy did not collect or spend any Brand Fund contributions in its last fiscal year ending December 29, 2024. This may be relevant to prospective franchisees as it provides insight into the Brand Fund's recent activity. Franchisees may want to inquire about the franchisor's plans for the Brand Fund in the future.