factual

Is Chocolate Bash required to spend any amount of advertising in the area where a particular franchisee is located?

Chocolate_Bash Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

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 is not required to spend any specific amount on advertising in the area or territory where a particular franchisee's location is situated. However, Chocolate Bash does maintain a brand website, which is funded by the Marketing Fund.

Chocolate Bash franchisees are obligated to contribute 1% of their gross sales per week to the Marketing Fund, although Chocolate Bash retains the right to have different franchisees contribute different amounts or rates. Notably, outlets owned by Chocolate Bash itself are not obligated to contribute to this fund. The Marketing Fund is used for marketing and related costs, with media coverage primarily focused at the local level. While the fund is not audited, Chocolate Bash will provide unaudited annual financial statements to franchisees upon request.

Furthermore, franchisees are required to spend at least 4% of their gross sales each month on marketing their individual Chocolate Bash business. Franchisees also have the option to create their own advertising materials, but these must be submitted to Chocolate Bash for approval at least 14 days before use. If Chocolate Bash does not respond within that timeframe, the material is considered rejected. Chocolate Bash may then use any franchisee-developed advertising materials for any purpose without compensating the franchisee.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.