Is Chocolate Fish Coffee required to form an advertising council?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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 is not required to form an advertising council. The FDD explicitly states that Chocolate Fish Coffee does not have an advertising council composed of franchisees, and the franchise agreement does not grant them the power to create one.
This means that franchisees do not have a formal mechanism, such as an advertising council, to influence the franchisor's advertising strategies or the use of the Brand Fund. The Brand Fund is administered by Chocolate Fish Coffee, and while they will provide unaudited annual financial statements upon request, franchisees have no direct control over how the fund is managed or spent.
Prospective franchisees should be aware that while they can submit their own advertising material for approval, Chocolate Fish Coffee has the right to use any franchisee-developed materials for any purpose without compensation. This highlights the importance of understanding the franchisor's control over advertising and marketing within the Chocolate Fish Coffee system.