Is there a Regional Advertising Fund for Chicken Guy, and if so, how is it established?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
our last fiscal year ending December 29, 2024.
Regional Advertising
In addition to the Brand Fund (when established), you will pay that portion of the Weekly Marketing Obligation as we direct to any Regional Advertising Fund or, in lieu of a Regional Advertising Fund, a Regional Co-op that we may establish in the geographic area that covers your Franchised Location. We will determine the geographic area covered by a Regional Advertising Fund or a Regional Co-op based on the location of the Chicken Guy! Restaurants in the area and the reach of print, radio and television media in the area. Company-operated and franchised Chicken Guy! Restaurants in the geographic area covered by a Regional Advertising Fund or a Regional Co-op will be obligated to contribute to that Fund or Co-op. As of the date of this disclosure document, we have not yet established any Regional Advertising Fund or Co-op.
As noted above, in lieu of a Regional Advertising Fund for the area that includes your Franchised Location, we may establish a Regional Co-op. Monies in the Regional Co-op may be spent for the purposes determined by majority vote of the Regional Co-op on the basis of one vote for each Chicken Guy! Restaurant in the Regional Co-op. If the members of a Regional Co-op are unable or fail to determine how to spend Regional Co-op monies, we may assume this decision-making authority following ten days' advance written notice to the Regional Co-op members.
Administration of the Funds
We, or our designee, shall direct all advertising, marketing, and public relations programs and activities financed by the Brand Fund (when established) and any Regional Advertising Fund with sole discretion over the creative concepts, materials and endorsements used in those programs and activities and the geographic, market and media placement and allocation of advertising and marketing materials.
Unless we otherwise agree in writing, advertising that is funded by the Brand Fund or any Regional Advertising Funds or Regional Co-ops must conform to those advertising and sales promotions that we
specify from time to time.
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, a Regional Advertising Fund may be established in the geographic area covering a franchisee's location. The geographic area covered by the fund is determined by Chicken Guy based on the location of restaurants and the reach of media in the area. Both company-operated and franchised Chicken Guy restaurants in the determined geographic area will be obligated to contribute to the Regional Advertising Fund.
The FDD states that as of the date of the disclosure document, Chicken Guy has not yet established any Regional Advertising Fund or Co-op. In lieu of a Regional Advertising Fund, Chicken Guy may establish a Regional Co-op. The funds in the Regional Co-op may be spent for purposes determined by a majority vote of the Regional Co-op members, with each Chicken Guy restaurant having one vote. However, if the members cannot decide how to spend the funds, Chicken Guy may assume decision-making authority after providing ten days' written notice to the Regional Co-op members.
Chicken Guy, or its designee, directs all advertising, marketing, and public relations programs financed by the Brand Fund and any Regional Advertising Fund, with sole discretion over creative concepts, materials, endorsements, and the geographic, market, and media placement of advertising materials. Advertising funded by the Brand Fund, Regional Advertising Funds, or Regional Co-ops must conform to Chicken Guy's specifications. Chicken Guy has the right to terminate or restart any of the advertising and cooperative funds and establish different advertising or cooperative funds. They may also incorporate any advertising fund and have a separate entity manage it.