Does Chocolate Fish Coffee currently have any local or regional advertising cooperatives?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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 currently have any local or regional advertising cooperatives. However, franchisees are required to contribute to the Brand Fund, with a contribution of 1% of gross sales per week. Chocolate Fish Coffee retains the right to have other franchisees contribute a different amount or at a different rate, and outlets that Chocolate Fish Coffee owns are not obligated to contribute to the Brand Fund.
The Brand Fund is administered by Chocolate Fish Coffee and is used for marketing and related purposes. Media coverage is primarily local, and Chocolate Fish Coffee uses outside vendors and consultants to produce advertising. Chocolate Fish Coffee is not required to spend any specific amount on advertising in the area or territory where any particular franchisee is located. While Chocolate Fish Coffee maintains the brand website, which may be paid for by the Brand Fund, they have no other obligation to conduct advertising.
Franchisees are allowed to use their own advertising or marketing material, but it requires Chocolate Fish Coffee's approval. To get approval, franchisees must submit any proposed advertising or marketing material at least 14 days before its intended use. If Chocolate Fish Coffee does not respond within that timeframe, the material is considered rejected. Chocolate Fish Coffee also states that if a franchisee develops any advertising or marketing materials, Chocolate Fish Coffee may use those materials for any purpose, without any payment to the franchisee.