Who manages the Marketing Fund for Chocolate Bash?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Marketing. CB Franchising shall manage the Marketing Fund.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, CB Franchising, LLC shall manage the Marketing Fund. CB Franchising uses the fund exclusively for marketing, advertising, and public relations activities, including campaigns at the local, regional, national, and international levels. These activities include developing and placing advertisements and promotions, sponsorships, social media, internet activities, e-commerce programs, market research, and administrative overhead.
The expenditures from the Marketing Fund are at the sole discretion of CB Franchising, and these expenditures do not need to be proportionate to the franchisee's contributions or provide any direct benefit to the franchisee. CB Franchising is not obligated to have all Chocolate Bash businesses contribute to the Marketing Fund or contribute the same amount. CB Franchising can also carry over any surplus funds to subsequent years or loan funds to the Marketing Fund if it operates at a deficit.
Within 120 days of the close of CB Franchising's fiscal year, they will prepare an unaudited annual financial statement of the Marketing Fund and provide it to the franchisee upon request. This fund is separate from any local marketing cooperatives that Chocolate Bash may establish. If established, Chocolate Bash determines the governance and commencement date of the cooperative, and may require the cooperative to adopt bylaws or regulations prepared by them.