Can the Chocolate Bash Marketing Fund be used at the regional level?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
- 9.4 Marketing Cooperatives. CB Franchising may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas.
If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations hereunder, Franchisee shall immediately become a member of such Market Cooperative.
If a Market Cooperative for the geographic area encompassing the Location is established during the term of this Agreement, Franchisee shall become a member of such Market Cooperative within 30 days.
CB Franchising shall not require Franchisee to be a member of more than one Market Cooperative.
- (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.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the Marketing Fund can be used for marketing, advertising, and public relations at the local, regional, national, and/or international level. CB Franchising has sole discretion over how the Marketing Fund is spent, and these expenditures do not need to directly or indirectly benefit each franchisee proportionately to their contributions.
In addition to the Marketing Fund, Chocolate Bash may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative exists for the franchisee's location when they begin operations, they must immediately become a member. If a Market Cooperative is established during the term of the Franchise Agreement, the franchisee must join within 30 days. Chocolate Bash will not require a franchisee to be a member of more than one Market Cooperative.
Each Market Cooperative is devoted to administering regional advertising and marketing programs and developing standardized promotional materials for use by the members in local advertising and promotion, subject to Chocolate Bash's approval. CB Franchising determines the governance, form, manner, and start date of each Market Cooperative and may require the Market Cooperative to adopt bylaws or regulations prepared by CB Franchising. Unless otherwise specified by Chocolate Bash, the activities are decided by a majority vote of its members. Chocolate Bash is entitled to attend and participate in any Market Cooperative meeting and has the same voting rights as franchisees for any Chocolate Bash business it owns in the Market Cooperative.
If the members of a Market Cooperative cannot agree on how to spend the Market Cooperative's funds, Chocolate Bash may assume decision-making authority after providing 10 days' notice to the members. This structure ensures that marketing efforts are coordinated and aligned with the overall brand strategy, while also allowing for regional customization and input from franchisees.