What is the purpose of the Marketing Funds collected from Christian Brothers Automotive franchisees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
isor cannot
and does not represent or insure that each franchise member of a Program will
benefit directly or on a pro rata basis from the placement of advertising in
connection with a particular Program.
(c) The Marketing Fund may be used to meet any and all costs of employing
advertising agencies and administering, directing, preparing, placing and paying for
regional and/or national advertising for the Program to which the Marketing Fund
pertains, including public relations and promotional campaigns typically used in
media such as direct mail advertising, newspapers, radio, and cable and local
television. This sum may also be spent for items including conducting marketing
studies, the production and purchase of advertising art, commercials, musical
jingles, print advertisements, point of sale materials, media advertising, outdoor
advertising art, and direct mail pamphlets and literature. This sum may further be
spent for additional items such as marketing support for technician recruitment
initiatives, testing new advertising tactics, national discount/offer funding, call
performance tracking, online reputation management, online directory listings
management, conducting market research, the development of customizable
franchisee marketing resources, travel costs for the marketing team to visit with
franchisees and attend marketing conferences that provide additional marketing
training to keep up-to-date on the latest marketing trends, performing marketing
vendor/solution audits and branded promotional items. Franchisor may, but need
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
not, maintain sums paid by franchisees to the Marketing Funds or income from the
Marketing Funds in a separate account from the other funds of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the Marketing Fund is used for advertising and marketing activities to promote the brand and benefit the franchise system. The funds may cover the costs of employing advertising agencies and managing regional or national advertising campaigns, including public relations and promotional efforts across various media such as direct mail, newspapers, radio, cable, and local television. These funds can also be allocated to marketing studies, the production of advertising materials, commercials, jingles, print ads, point-of-sale materials, and outdoor advertising.
In addition to traditional advertising methods, the Marketing Fund can support technician recruitment, test new advertising strategies, fund national discounts or offers, track call performance, manage online reputation and directory listings, conduct market research, develop customizable marketing resources for franchisees, cover travel costs for the marketing team to visit franchisees and attend marketing conferences, perform marketing vendor audits, and purchase branded promotional items. Christian Brothers Automotive has the discretion to manage the creative aspects, materials, and media used in these programs, aiming to enhance public recognition and acceptance of the brand.
Christian Brothers Automotive may allocate up to 15% of the Marketing Funds annually for administrative costs and overhead associated with managing the funds. The company is expected to make its best effort to spend the marketing funds within the fiscal year they are contributed. If there are unused funds, Christian Brothers Automotive can either spend them in the following fiscal year or rebate them to the franchisees on a pro-rata basis. Conversely, if the expenditures exceed the available funds, Christian Brothers Automotive can reimburse itself from the Marketing Funds in the subsequent fiscal year.
While the Marketing Funds are intended to be perpetual, Christian Brothers Automotive retains the right to terminate them, provided that all remaining funds are either spent on advertising and promotion or rebated to the franchisees who contributed. Franchisees should recognize that Christian Brothers Automotive is not obligated to ensure that each franchise benefits directly or proportionally from specific advertising placements. Additionally, franchisees are required to adhere to Christian Brothers Automotive's advertising standards and obtain approval for local advertising materials to maintain brand consistency and quality.