When is the Marketing Fund Contribution due for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of your gross sales | Monthly by the 5th day of the following month | See Note 1 and Note 2. |
| Marketing Fund Contribution | 1% of your gross sales | Monthly by the 5th day of the following month | |
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Monthly by the 5th day of the following month | We have the right to establish local or regional advertising cooperatives. There is no maximum on the contribution determined by the co-op. |
Notes
- "Gross Sales" is defined in our franchise agreement as the total dollar amount of all sales generated through your business for a given period, including, but not limited to, payment for any services or products sold by you, whether for cash or credit. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected, (iii) sale of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales).
We currently require you to pay royalty fees and other amounts due to us by preauthorized bank draft. However, we can require an alternative payment method.
All fees are nonrefundable. All fees are uniform for all franchisees, although we reserve the right to change, waive, or eliminate fees for any one or more franchisees as we deem appropriate. There are currently no marketing cooperatives, purchasing cooperatives, or other cooperatives that impose fees on you.
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the Marketing Fund Contribution is due monthly by the 5th day of the following month. This contribution is set at 1% of the franchise's gross sales. Gross sales include all sales generated through the business, whether for cash or credit, but excludes bona fide refunds to customers, sales taxes collected, sale of used equipment not in the ordinary course of business, and sales of prepaid cards or similar products (although the redemption of such cards is included in gross sales).
This means that a Chocolate Bash franchisee must calculate 1% of their gross sales each month and remit that amount to the marketing fund by the 5th day of the following month. For example, if a franchise has $50,000 in gross sales in January, they would need to pay $500 (1% of $50,000) to the marketing fund by February 5th. This contribution is in addition to the 6% royalty fee also collected monthly.
Chocolate Bash also has the right to establish local or regional advertising cooperatives, and while there are currently none, the FDD states that there is no maximum on the contribution determined by the co-op. The franchisee is required to pay royalty fees and other amounts due to Chocolate Bash by preauthorized bank draft, but Chocolate Bash can require an alternative payment method. All fees are nonrefundable, but Chocolate Bash reserves the right to change, waive, or eliminate fees for any one or more franchisees as they deem appropriate.