Who pays for the Chocolate Bash brand website?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
ising
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which will be paid for by the Marketing Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative. We will define the area of the cooperative based on media markets, or other geographic criteria that we deem appropriate. Each franchisee in the area would have one vote per outlet (unless the franchisee is in default under its franchise agreement).
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, the brand website will be maintained and paid for by the Marketing Fund. This fund is supported by contributions from franchisees, who are required to contribute 1% of their gross sales per week. Chocolate Bash notes that outlets they own are not obligated to contribute to the Marketing Fund.
The Marketing Fund is used for marketing and related purposes and costs. Chocolate Bash utilizes outside vendors and consultants to produce advertising. While the brand maintains the website, franchisees should note that Chocolate Bash is not required to spend any specific amount of advertising in the area or territory where any particular franchisee is located.
Prospective franchisees should be aware that the Marketing Fund is not audited, although Chocolate Bash will make unaudited annual financial statements available to franchisees upon request. This means franchisees have access to information about how the fund is being managed and spent, but the information is not independently verified. Franchisees are also required to spend at least 4% of gross sales each month on marketing their individual business, in addition to the 1% contribution to the Marketing Fund.