What is the Brand Fund for Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund. This contribution is 1% of gross sales per week. However, Chocolate Fish Coffee retains the right to have different franchisees contribute different amounts or at different rates. Company-owned outlets are not required to contribute to the Brand Fund. The Brand Fund is administered by Chocolate Fish Coffee and is not audited, though unaudited annual financial statements will be made available to franchisees upon request.
The Brand Fund is to be used by Chocolate Fish Coffee for marketing and related purposes and costs. Media coverage is primarily local, and outside vendors and consultants are used to produce advertising. Chocolate Fish Coffee is not required to spend any specific amount of advertising in the area or territory where any particular franchisee is located but will maintain the brand website, which may be paid for by the Brand Fund.
Because Chocolate Fish Coffee is a new franchisor, no money was spent from the Brand Fund in the most recently concluded fiscal year. If funds are not fully spent in the fiscal year they accrue, the remaining money will stay in the Brand Fund for use in the following year. No money from the Brand Fund is used to solicit new franchise sales.