Who manages the Brand Fund for Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
(d) Marketing. Chocolate Fish Franchising shall manage the Brand Fund.
(a) Separate Account.
Chocolate Fish Franchising shall hold the Brand Fund Contributions from all franchisees in one or more bank accounts separate from Chocolate Fish Franchising's other accounts.
- (b) Use.
Chocolate Fish Franchising shall use the Brand Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead.
- (c) Discretion.
Franchisee agrees that expenditures from the Brand Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee.
Chocolate Fish Franchising will prepare an unaudited annual financial statement of the Brand Fund within 120 days of the close of Chocolate Fish Franchising's fiscal year and will provide the financial statement to Franchisee upon request.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Chocolate Fish Franchising manages the Brand Fund. The Brand Fund is used for marketing, advertising, and public relations at the local, regional, national, and international levels.
Chocolate Fish Franchising is responsible for holding Brand Fund contributions in separate bank accounts. These funds are used for various marketing-related activities, including advertising, sponsorships, website maintenance, social media, market research, and administrative expenses.
Chocolate Fish Franchising has the discretion to decide how the Brand Fund is spent, and these expenditures do not need to be proportionate to individual franchisee contributions or provide direct benefits to each franchisee. Chocolate Fish Franchising will provide an unaudited annual financial statement of the Brand Fund to franchisees upon request within 120 days of the close of Chocolate Fish Franchising's fiscal year.