Who is responsible for preparing and distributing financial accountings of the Brand Fund for Chop5 Salad Kitchen?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
We intend to establish and administer the Brand Fund to promote public awareness of our brand and improve our System. We expect to establish the Brand Fund on the opening date of the first franchised Restaurant. We may use the Brand Fund to pay for any of the following in our discretion:
- preparing and distributing financial accountings of the Brand Fund
An unaudited financial accounting of the operations of the Brand Fund will be prepared annually and made available to you upon request. During the fiscal year ended December 31, 2023 we did not collect or spend any monies from the Brand Fund.
We direct and have complete control and discretion over all advertising programs paid for by the Brand Fund, including the creative concepts, content, materials, endorsements, frequency, placement and media used for the programs. During our growth phase, we expect most advertising will be local or regional in coverage. We may conduct advertising through any media we deem appropriate, including digital, print, television, radio and billboard. The Brand Fund will not be used to pay for advertisements principally directed at selling additional franchises, although consumer advertising may include notations such as "franchises available" and one or more pages on our website may promote the franchise opportunity.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–36)
What This Means (2024 FDD)
According to the 2024 FDD, Chop5 Salad Kitchen is responsible for preparing and distributing the financial accountings of the Brand Fund. The Brand Fund is used to promote public awareness and improve the Chop5 Salad Kitchen system. Chop5 Salad Kitchen may use the Brand Fund to pay for preparing and distributing financial accountings.
Additionally, the FDD states that an unaudited financial accounting of the operations of the Brand Fund will be prepared annually and made available to franchisees upon request. For the fiscal year ended December 31, 2023, Chop5 Salad Kitchen did not collect or spend any monies from the Brand Fund.
Chop5 Salad Kitchen maintains complete control and discretion over all advertising programs paid for by the Brand Fund. The Brand Fund will not be used to pay for advertisements principally directed at selling additional franchises, although consumer advertising may include notations such as "franchises available."