Can the Chocolate Bash Marketing Fund be used for trade shows and other events?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
hising has established a Marketing Fund:
- (a) Separate Account. CB Franchising shall hold the Marketing Fund Contributions from all franchisees in one or more bank accounts separate from CB Franchising's other accounts.
- (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).
- (c) Discretion. Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee.
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 trade shows and other events. CB Franchising uses the Marketing Fund for marketing, advertising, and public relations materials, programs, and campaigns at the local, regional, national, and international levels, including related overhead.
These activities and expenses, as determined reasonable by CB Franchising, may include developing and placing advertisements and promotions, sponsorships, contests and sweepstakes, developing décor, trade dress, Marks, and branding, maintaining 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 employee compensation and accounting, bookkeeping, reporting, and legal expenses.
The franchisee agrees that Marketing Fund expenditures do not need to be proportionate to their contributions or provide any direct or indirect benefit to them. The Marketing Fund will be spent at CB Franchising's sole discretion, and CB Franchising has no fiduciary duty regarding the Marketing Fund.