Who does Chocolate Fish Coffee use to produce advertising?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Advertising
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 FDD, the company uses outside vendors and consultants to produce advertising. The FDD specifies that media coverage is primarily local. Chocolate Fish Coffee is not required to spend any amount on advertising in the area or territory where any particular franchisee is located.
Chocolate Fish Coffee franchisees are required to contribute 1% of gross sales per week to the Brand Fund, which is used for marketing and related costs. The Brand Fund is administered by Chocolate Fish Coffee and is not audited; however, unaudited annual financial statements are made available to franchisees upon request.
Franchisees must develop a market introduction plan and obtain Chocolate Fish Coffee's approval of the plan at least 30 days before the projected opening date of their business. Franchisees may also use their own advertising or marketing material, but only with Chocolate Fish Coffee's approval, which requires submitting the material at least 14 days prior to use. If Chocolate Fish Coffee does not respond, the material is deemed rejected. Chocolate Fish Coffee may use any advertising or marketing materials developed by franchisees for any purpose, without any payment to the franchisee.