For what purposes can the Chocolate Bash Marketing Fund be used?
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.
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.
The Marketing Fund will be spent at CB Franchising's sole discretion, and CB Franchising has no fiduciary duty with regard to the Marketing Fund.
- (d) Contribution by Other Outlets.
CB Franchising is not obligated to (i) have all other Chocolate Bash businesses (whether owned by other franchisees or by CB Franchising or its
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 is used for marketing, advertising, and public relations on various levels. This includes materials, programs, and campaigns at the local, regional, national, and international levels, along with related overhead expenses. These activities and expenses are determined reasonably by CB Franchising.
The specific activities covered by the Marketing Fund include the development and placement of advertising and promotions, sponsorships, contests, and sweepstakes. It also covers the development of décor, trade dress, Marks, and branding, as well as the development and maintenance of brand websites, social media, internet activities, and e-commerce programs. Search engine optimization, market research, public relations, media or agency costs, trade shows, and other events, printing and mailing are also included. The fund can also be used for administrative and overhead expenses related to the Marketing Fund, including employee compensation for those working on marketing, accounting, bookkeeping, reporting, and legal expenses.
It's important to note that Chocolate Bash has sole discretion over how the Marketing Fund is spent, and expenditures do not need to be proportionate to a franchisee's contributions or provide any direct benefit to the franchisee. CB Franchising is also not obligated to have all Chocolate Bash businesses contribute to the Marketing Fund or contribute at the same rate as the franchisee. This means that franchisees may be required to contribute to a fund that benefits the Chocolate Bash brand as a whole, even if their specific location does not directly benefit. Franchisees should be aware that CB Franchising does not have a fiduciary duty regarding the Marketing Fund.