Does Chocolate Fish Coffee have an advertising council composed of franchisees?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Advertising Fund. You and all other franchisees must contribute to our Brand 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 Brand Fund. We administer the fund. The fund is not audited. We will make unaudited annual financial statements available to you upon request.
Because we are a new franchisor, we did not spend any money from the Brand Fund in our most recently concluded fiscal year.
If less than all Brand Funds are spent in the fiscal year in which they accrue, the money will remain in the Brand Fund to be spent in the next year.
No money from the Brand Fund is spent principally to solicit new franchise sales.
Market introduction plan. You must develop a market introduction plan and obtain our approval of the plan at least 30 days before the projected opening date of your business.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Chocolate Fish Coffee does not have an advertising council composed of franchisees. The franchise agreement does not give Chocolate Fish Coffee the power to form an advertising council.
Chocolate Fish Coffee does require franchisees to contribute to a Brand Fund, with contributions set at 1% of gross sales per week. Chocolate Fish Coffee retains the right to have different franchisees contribute different amounts or rates, and company-owned outlets are not obligated to contribute. Chocolate Fish Coffee administers the Brand Fund, which is not audited; however, 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. Any unspent funds will remain in the Brand Fund for use in subsequent years, and no money from the Brand Fund is used to solicit new franchise sales. Franchisees are also required to develop a market introduction plan for their location and obtain Chocolate Fish Coffee's approval at least 30 days before opening.