Are Chocolate Bash-owned outlets obligated to contribute to the Marketing Fund?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Advertising Fund. You and all other franchisees must contribute to our Marketing Fund. Your contribution is 1% of gross sales per week. We reserve the right to have other franchisees contribute a different amount or at a different rate. Outlets that we own are not obligated to contribute to the Marketing Fund. We administer the fund. The fund is not audited. We will make unaudited annual financial statements available to you upon request.
If less than all marketing funds are spent in the fiscal year in which they accrue, the money will remain in the Marketing Fund to be spent in the next year. In 2023 we spend all the funds collected for the Marketing Fund.
No money from the Marketing Fund is spent principally to solicit new franchise sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–25)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, Chocolate Bash-owned outlets do not have to contribute to the Marketing Fund. However, franchisees must contribute 1% of gross sales per week to the Marketing Fund. Chocolate Bash retains the right to have different franchisees contribute different amounts or at different rates.
The Marketing Fund is administered by Chocolate Bash. These funds are used for marketing and related costs. While Chocolate Bash uses outside vendors and consultants to produce advertising, they are not required to spend any amount of advertising in the area or territory where any particular franchisee is located.
Chocolate Bash will maintain the brand website, which will be paid for by the Marketing Fund. Unaudited annual financial statements for the fund will be made available to franchisees upon request. In 2023, Chocolate Bash spent all the funds collected for the Marketing Fund.