Will Chocolate Fish Coffee prepare an annual financial statement of the Brand Fund?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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- F. Brand Fund. We will administer the Brand Fund (Section 5.5). We will prepare an unaudited annual financial statement of the Brand Fund within 120 days of the close of our fiscal year and will provide the financial statement to you upon request. (Section 9.3)
- G. Website. We will maintain a website for the Chocolate Fish Coffee brand, which will include your business information and telephone number. (Section 5.5)
Advertising
Our obligation. We will use the Brand Fund only for marketing and related purposes and costs. Media coverage is primarily local.
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, Chocolate Fish Coffee will prepare an unaudited annual financial statement of the Brand Fund. This statement will be available within 120 days of the close of Chocolate Fish Coffee's fiscal year. Franchisees can request this financial statement from Chocolate Fish Coffee.
As a new franchisor, Chocolate Fish Coffee did not spend any money from the Brand Fund in its most recently concluded fiscal year. The Brand Fund is used only for marketing and related costs. 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 any particular franchisee's area or territory. If the Brand Fund has money left over at the end of the fiscal year, 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.