factual

How does Corporate Cleaning Group administer the Brand Fund?

Corporate_Cleaning_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

s no obligation to contribute to the Brand Fund on the same basis as Franchisee with respect to Corporate Cleaning Group outlets operated by Franchisor or Franchisor's affiliates.

  • 13.3.4. Franchisor may use the Brand Fund to satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and disseminating advertising, marketing, promotional and public relations materials, programs, campaigns, sales and marketing seminars and training programs of every kind and nature, through media now existing or hereafter developed (including, without limitation, the cost of television, radio, magazine, social media, newspaper and electronic advertising campaigns; direct mail and outdoor billboard advertising; public relations activities; conducting marketing research, employing advertising agencies to assist therein; developing, enhancing and maintaining the Website; and personnel and other departmental costs for advertising that Franchisor internally administers or prepares).
  • 13.3.5. The Brand Fund will be operated solely as a conduit for collecting and expending the advertising and technology contributions for the System. The Brand Fund will not be used to defray any of Franchisor's general operating expenses, except for reasonable administrative costs and overhead that Franchisor may incur in activities related to the administration and direction of the Brand Fund and such costs and expenses pursuant Section 13.3.4. Franchisor further reserves the right to include "Franchises Available" or similar language and contact information in advertising produced with Brand Fund contributions. The Brand Fund and its earnings shall not otherwise inure to Franchisor's benefit.
  • 13.3.6. Franchisor will prepare an unaudited annual statement of the Brand Fund's operations and will make it available to Franchisee upon request. In administering the Brand Fund, Franchisor undertakes no obligation to make expenditures for Franchisee that are equivalent or proportionate to Franchisee's contribution or to ensure that any particular franchisee benefits directly or pro rata from the production or placement of advertising.
  • 13.3.7. Although the Brand Fund is intended to be of perpetual duration, Franchisor may terminate it at any time and for any reason or no reason. Franchisor will not terminate the Brand Fund, however, until all monies in the Brand Fund have been spent for advertising or promotional purposes or returned to contributors, without interest, on the basis of their respective contributions.

Source: Item 22 — CONTRACTS (FDD page 51)

What This Means (2025 FDD)

According to Corporate Cleaning Group's 2025 Franchise Disclosure Document, the Brand Fund is administered at the discretion of the franchisor. Corporate Cleaning Group may use the Brand Fund to cover the costs of various advertising, marketing, and promotional activities, including television, radio, magazine, social media, newspaper, and electronic advertising campaigns, as well as direct mail, outdoor billboard advertising, public relations, marketing research, website maintenance, and personnel costs related to advertising. The Brand Fund operates as a conduit for collecting and expending advertising and technology contributions for the Corporate Cleaning Group system.

The Brand Fund will not be used to cover Corporate Cleaning Group's general operating expenses, except for reasonable administrative costs and overhead related to the fund's administration. Corporate Cleaning Group reserves the right to include "Franchises Available" language and contact information in advertising produced with Brand Fund contributions. The Brand Fund's earnings will not benefit Corporate Cleaning Group, and Corporate Cleaning Group will prepare an unaudited annual statement of the Brand Fund's operations, which will be available to franchisees upon request.

Corporate Cleaning Group does not guarantee that expenditures from the Brand Fund will be equivalent or proportionate to a franchisee's contribution or that any franchisee will directly benefit from the advertising. While the Brand Fund is intended to be perpetual, Corporate Cleaning Group may terminate it at any time, for any reason. However, Corporate Cleaning Group will not terminate the Brand Fund until all monies have been spent on advertising or promotional purposes or returned to contributors, without interest, based on their contributions. This means that while franchisees are required to contribute to the Brand Fund, the franchisor has broad discretion over how the funds are spent, and there is no guarantee of direct benefit to individual franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.