Does CB Franchising have to approve online advertising for Chocolate Bash franchises?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
7.17 Public Relations. Franchisee shall not make any public statements (including giving interviews or issuing press releases) regarding Chocolate Bash, the Business, or any particular incident or occurrence related to the Business, without CB Franchising's prior written approval, which will not be unreasonably withheld.
(b) Purpose.
Each Market Cooperative shall be devoted exclusively to administering regional advertising and marketing programs and developing (subject to CB Franchising's approval) standardized promotional materials for use by the members in local advertising and promotion.
- (b) Use.
CB Franchising shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead.
The foregoing includes such activities and expenses as CB Franchising reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of CB Franchising's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
- (f) Financial Statement.
CB Franchising will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of CB Franchising's fiscal year and will provide the financial statement to Franchisee upon request.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, franchisees must obtain prior written approval from CB Franchising for any public statements regarding Chocolate Bash, the business, or any incident related to the business. This includes interviews or press releases. This approval will not be unreasonably withheld.
Additionally, Chocolate Bash may establish market advertising and promotional cooperative funds. These cooperatives focus on regional advertising and marketing programs and developing standardized promotional materials, subject to CB Franchising's approval, for local advertising and promotion. If a cooperative is established for the franchisee's area, membership is mandatory.
CB Franchising also uses a Marketing Fund for marketing, advertising, and public relations materials, which may include the development and maintenance of brand websites, social media, internet activities, e-commerce programs, and search engine optimization. While the Marketing Fund is spent at Chocolate Bash's sole discretion, franchisees may request an annual financial statement of the fund.