Is there a maximum annual contribution amount for the Chicken Guy 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, there is a maximum annual contribution amount for the Brand Fund. Franchisees are required to contribute the amount specified in the Data Sheet, with a ceiling of $30,000 during each of Chicken Guy's fiscal years. However, Chicken Guy retains the right to modify this amount as detailed in Section 9.B of the agreement. This contribution is earmarked for the Brand Fund, which Chicken Guy will use to enhance and protect the Chicken Guy system and its proprietary marks through advertising, marketing, public relations, research, and related activities. Chicken Guy restaurants operated by Chicken Guy and its affiliates will contribute to the Brand Fund on the same basis as comparable franchisees.
Chicken Guy has sole discretion over how the Brand Fund is used, ensuring that the monies are directed towards initiatives that enhance public recognition and perception of the Chicken Guy system and proprietary marks. Franchisees are obligated to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Fund. This mandatory participation ensures a unified brand image and marketing strategy across all Chicken Guy locations.
Chicken Guy will separately account for the Brand Fund, although the funds are not required to be segregated from Chicken Guy's other monies. The Brand Fund can 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 of all Chicken Guy restaurants in any fiscal year and may invest any surplus for future use. Franchisees are entitled to receive an annual statement of monies collected and costs incurred by the fund upon written request. Chicken Guy also reserves the right to transfer monies from the Brand Fund to any Regional Advertising Fund or from all Regional Advertising Funds to the Brand Fund to maximize media effectiveness.