Who administers the Brand Fund for Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
edures for our system.
- F. Brand Fund. We will administer the Brand Fund (Section 5.5). We will prepare an unaudited annual financial statement of the Brand Fund within 120 days of the close of our fiscal year and will provide the financial statement to you upon request. (Section 9.3)
- G. Website. We will maintain a website for the Chocolate Fish Coffee brand, which will include your business information and telephone number. (Section 5.5)
Advertising
Our obligation. We will use the Brand 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 may be paid for by the Brand 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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the Brand Fund is administered by Chocolate Fish Coffee itself. Franchisees are required to contribute 1% of their gross sales per week to the Brand Fund. However, Chocolate Fish Coffee retains the right to have different franchisees contribute different amounts or rates, and company-owned outlets are not obligated to contribute to the Brand Fund.
The Brand Fund is designated for marketing and related costs, with media coverage primarily focused at the local level. Chocolate Fish Coffee utilizes outside vendors and consultants for advertising production. It's important to note that Chocolate Fish Coffee is not obligated to spend any specific amount on advertising in the area or territory where a particular franchisee is located. The franchisor will maintain the brand website, potentially using funds from the Brand Fund.
The Brand Fund is not audited, but Chocolate Fish Coffee will provide unaudited annual financial statements to franchisees upon request. As a new franchisor, Chocolate Fish Coffee did not spend any money from the Brand Fund in its most recently concluded fiscal year. If funds are not fully spent within a fiscal year, they will remain in the Brand Fund for use in subsequent years. No money from the Brand Fund is used to solicit new franchise sales.