What is the purpose of the Brand Marketing Fund for Cool Binz franchisees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nd Marketing Fund*
We have established and maintain a brand marketing fund (the "Brand Marketing Fund") for the common benefit of System franchisees. You must contribute two percent (2%) of your Gross Sales monthly to the Brand Marketing Fund (the "Brand Marketing Fee") in the manner we prescribe. You must pay the Brand Marketing Fee on a monthly basis. (Section 2.G of the Franchise Agreement).
We will use the Brand Marketing Fees, in our sole discretion, to develop, produce and distribute national, regional and/or local advertising and to create advertising materials and public relations programs which promote, in our sole judgment, the services offered by COOL BINZ franchisees. The advertising and marketing conducted through the Brand Marketing Fund is a combination of in-house marketing materials and through national agencies. We have the sole right to determine contributions and expenditures from the Brand Marketing Fund, or any other advertising program, and the sole authority to determine, without limitation, the selection of the advertising materials and programs; provided, however, that we will make a good faith effort to expend Brand Marketing Fees in the general best interests of the System on a national or regional basis. We may use the Brand Marketing Fund to satisfy any and all costs of maintaining, administering, directing, preparing, producing, and implementing advertising, including the cost of: (i) preparing, producing, and implementing television, radio, magazine and newspaper advertising campaigns, the cost of direct mail and outdoor billboard advertising; (ii) public relations activities and advertising agencies; (iii) developing and maintaining an Internet website; and personnel and other departmental costs for advertising that we internally administer or prepare. Nevertheless, we acknowledge that not all System franchisees will benefit directly or on a pro rata basis from such expenditures, and we do not have any obligation to spend any amount on advertising in your Territory. While we do not anticipate that the Brand Marketing Fund will be used for advertising which is principally a solicitation for franchisees, we reserve the right to use the Brand Marketing Fund for public relations or recognition of the "COOL BINZ" brand, for the creation and maintenance of a website, a portion of which can be used to explain the franchise offering and solicit potential franchisees, and to include a notation in any advertisement indicating "Franchises Available."
We may periodically assist COOL BINZ franchisees to maintain high quality standards through customer surveys, customer interviews, and other similar initiatives ("Surveys"). The cost of such programs will be borne by the Brand Marketing Fund. The cost of these programs may be charged directly to you if the results from a Survey fall below System established minimum standards for such Surveys.
We have the right to reimburse ourselves from the Brand Marketing Fund for such reasonable costs and overhead, if any, that we may incur in activities reasonably related to the direction, management, and implementation of the Brand Marketing Fund, which may include payments to employees who administer the Fund.
We may use a portion of the Brand Marketing Fund or the weekly usage/support/upgrade fee to pay or reimburse ourselves for the costs incurred in connection with the development, maintenance and update of our website.
We and our affiliate-owned outlets are not required to contribute to the Brand Marketing Fund. We may, but are not obligated to, advance money to the Brand Marketing Fund to fund Brand Marketing Fund programs. In the event that we advance monies to the Brand Marketing Fund, we will determine, in our sole discretion, the manner and timing for the repayment, to us, of some, or all, of the funds we advance. All franchisees will contribute to the Brand Marketing Fund at the same rate.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–45)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the Brand Marketing Fund is established for the common benefit of System franchisees. Franchisees are required to contribute two percent (2%) of their Gross Sales monthly to this fund, referred to as the Brand Marketing Fee. Cool Binz has the sole right to determine contributions and expenditures from the Brand Marketing Fund. Cool Binz also has the sole authority to determine the selection of advertising materials and programs. However, Cool Binz will make a good faith effort to expend Brand Marketing Fees in the general best interests of the System on a national or regional basis.
The Brand Marketing Fund may be used to cover various costs related to advertising, including preparing and implementing television, radio, magazine, and newspaper advertising campaigns, direct mail and outdoor billboard advertising, public relations activities, advertising agencies, and developing and maintaining an Internet website. The fund can also be used for personnel and other departmental costs for advertising that Cool Binz internally administers or prepares. Cool Binz may use a portion of the Brand Marketing Fund to pay or reimburse themselves for the costs incurred in connection with the development, maintenance, and update of their website.
While Cool Binz aims to benefit all franchisees, the FDD acknowledges that not all franchisees will directly or proportionally benefit from these expenditures, and Cool Binz does not have an obligation to spend any amount on advertising in a franchisee's specific territory. Cool Binz and its affiliate-owned outlets are not required to contribute to the Brand Marketing Fund. Cool Binz will prepare an annual statement of contributions and expenditures for the Brand Marketing Fund, available to franchisees upon written request within 120 days of the fiscal year's end. In the fiscal year ended December 31, 2024, Cool Binz did not collect or spend any Brand Marketing Fund contributions.