Who manages the Brand Fund for Chocolate Fish Coffee franchises?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
(d) Marketing. Chocolate Fish Franchising shall manage the Brand Fund.
9.3 Brand Fund. Chocolate Fish Franchising may establish a Brand Fund to promote the System on a local, regional, national, and/or international level.
If Chocolate Fish Franchising has established a 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.
The foregoing includes such activities and expenses as Chocolate Fish Franchising reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Brand Fund (including the compensation of Chocolate Fish Franchising's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Brand Fund).
- (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.
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.
The Brand Fund will be spent at Chocolate Fish Franchising's sole discretion, and Chocolate Fish Franchising has no fiduciary duty with regard to the Brand Fund.
- (e) Surplus or Deficit.
Chocolate Fish Franchising may accumulate funds in the Brand Fund and carry the balance over to subsequent years.
If the Brand Fund operates at a deficit or requires additional funds at any time, Chocolate Fish Franchising may loan such funds to the Brand Fund on reasonable terms.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Franchising manages the Brand Fund. The Brand Fund may be established to promote the Chocolate Fish Coffee system at the local, regional, national, and/or international level.
Chocolate Fish Franchising is responsible for holding Brand Fund contributions in separate bank accounts and using the funds for marketing, advertising, and public relations efforts. These efforts include developing advertising, sponsorships, maintaining brand websites, social media, market research, and covering administrative expenses related to the Brand Fund.
The expenditures from the Brand Fund do not need to be proportionate to a franchisee's contributions, nor do they have to provide any direct or indirect benefit to the franchisee. Chocolate Fish Franchising has the discretion to accumulate funds and carry over the balance to subsequent years and may loan funds to the Brand Fund if it operates at a deficit.