Do Chocolate Fish Coffee affiliates pay marketing fees?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
re Document, may be one source of this information.
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- Our Affiliates do not pay royalties or marketing fees to us; however, we have shown the estimated expenditures (6% Royalty, 1% Brand Fund) for each Affiliate had they incurred those expenses.
- 5. Some outlets have sold and earned this amount. Your individual results may differ. There is no assurance that you'll sell or earn as much.
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- Written substantiation of the information contained in this Item 19 will be made available to prospective franchisees upon reasonable request.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 37–38)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, affiliates are not required to pay marketing fees. However, Item 19 includes estimated expenditures for what a 1% Brand Fund contribution would be, for illustrative purposes.
The document provides financial performance representations for three company-owned locations, using data from September 1, 2022, through September 30, 2023. These representations include gross sales figures alongside estimated royalty fees and brand fund contributions, even though affiliates are not actually charged these fees. For example, one location had gross sales of $850,850.75, with estimated royalty fees of $51,051.05 and an estimated brand fund contribution of $8,508.51. Another location had gross sales of $531,854.48, with estimated royalty fees of $31,911.27 and an estimated brand fund contribution of $5,318.54. A third location had gross sales of $828,545.45, with estimated royalty fees of $49,712.73 and an estimated brand fund contribution of $8,285.45.
These estimated expenditures are calculated based on a 6% royalty and a 1% brand fund contribution. While Chocolate Fish Coffee affiliates do not pay these fees, the inclusion of these estimates allows prospective franchisees to understand what these costs would be if they were applied. This information is presented for illustrative purposes only and does not represent actual expenses for affiliates.