Who pays for the Chocolate Fish Coffee brand website?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Our obligation. We will use the Brand Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which may be paid for by the Brand Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
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 will maintain a website for the brand, including the franchisee's business information and telephone number. The FDD states that the brand website may be paid for by the Brand Fund. The Brand Fund consists of contributions from franchisees, set at 1% of gross sales per week. Chocolate Fish Coffee maintains control over the Brand Fund and is not obligated to spend any specific amount of advertising in any particular franchisee's area.
Chocolate Fish Coffee will provide franchisees with recommended prices for products and services, as well as recommended procedures for administration, bookkeeping, accounting, and inventory control. These procedures may become required rather than just recommended. Franchisees are required to buy or lease and use a point-of-sale system and computer system, estimated to cost between $3,000 and $6,000 to purchase.
Chocolate Fish Coffee is a new franchisor and did not spend any money from the Brand Fund in its most recently concluded fiscal year. If funds are not fully spent in the fiscal year they accrue, the money will remain in the Brand Fund for future use. No money from the Brand Fund is used to solicit new franchise sales. Franchisees are required to develop a market introduction plan and obtain Chocolate Fish Coffee's approval at least 30 days before their business opens.