What is the definition of 'Brand Fund Contribution' for a Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
s that we require in connection with the grand opening advertising program.
Brand Fund. We have established a brand promotion fund (the "Brand Fund") to administer certain advertising, marketing, and public relations programs for the System, the Jeni's® brand, and the promotion of Jeni's Ice Creams Scoop Shops. You must contribute to the Brand Fund the amount that we prescribe (the "Brand Fund Contribution"). Currently, the Brand Fund Contribution is 2% of Net Sales. We may modify the amount of the Brand Fund Contribution with 30 days prior notice to you, in an amount up to 4% of Net Sales.
We are not required to spend any amount on marketing within any particular market. We will have exclusive control over all programs and services administered by the Brand Fund, including over the creative concepts, materials, and campaigns and their geographic market, media placement and allocation. The Brand Fund may pay for preparing and producing video, audio, and written materials and electronic media; sponsoring, supporting, and/or donating proceeds to one or more charitable, social, or community organizations or initiatives and/or hosting campaigns, initiatives, and/or events for the foregoing; developing, implementing, and maintaining any website, domain name, email
address, social media account, username, other digital presence or presence on any electronic, virtual, or digital medium of any kind (each a "Digital Presence") or other software or applications; administering national, regional, digital, or local advertising and marketing campaigns and/or programs; using advertising, promotion, and marketing agencies and other advisors to provide assistance; supporting public relations, market research, and other advertising, promotion, and marketing strategy or implementation activities; and/or any other expenditures that are directly or indirectly related to promoting the Marks, the System, the brand, and/or Jeni's Ice Creams Scoop Shops. We may also use the Brand Fund to pay for the Brand Fund's administrative and overhead costs, including the reasonable salaries and benefits of personnel who manage and administer the Brand Fund, and any other expenses that we or our affiliates incur that are related to administering or directing the Brand Fund and its programs. We may modify Brand Fund expenditures at any time.
Neither we nor any of our affiliates has any fiduciary obligation to you or any other person for administering the Brand Fund. We will not make the financial statements of the Brand Fund available for review by franchisees. We may reduce or suspend Brand Fund Contributions and/or operations of the Brand Fund for one or more periods of any length and terminate (and, if terminated, reinstate) the Brand Fund and associated Brand Fund Contributions. If we terminate the Brand Fund, we will spend the remaining balance of the monies in the Brand Fund in accordance with our System Standards until such amounts are exhausted. We may elect to maintain multiple Brand Funds, whether determined by geographic region, country, or otherwise, or consolidate or merge multiple Brand Funds.
We do not currently have any franchisees, and therefore we did not collect any Brand Fund Contributions or spend any amounts from any Brand Fund on media production, media placement, administration, or to solicit new franchise sales in our most recently completed fiscal year. Jeni's Ice Creams Scoop Shops owned by us or our affiliates will contribute to the Brand Fund at the same rate as franchise-owned Jeni's Ice Creams Scoop Shops.
Your Local Advertising. You are responsible for conducting all local advertising for your Shop. However, you must satisfy our System Standards for all advertising for your Shop and/or using the Marks or the System. Our System Standards may require that you advertise and market your Shop in specific advertising mediums we determine, use forms of advertisement we approve, list your Shop with the online directories and subscriptions we prescribe, and/or include links or references to Digital Presences in the manner we prescribe. Your advertising, promotion, and marketing must be completely clear, factual, and not misleading and conform to both the highest standards of ethical advertising and marketing and the advertising and marketing policies that we prescribe. At least 14 days before you use them, you must send us for approval samples of all advertising, promotional, and marketing materials which we have not prepared or previously approved. If you do not receive written approval within 14 days after we receive the materials, they are deemed to be disapproved.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–35)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Brand Fund Contribution is the amount that Cream prescribes that franchisees must contribute to the brand promotion fund. The brand promotion fund, or "Brand Fund," is used to administer advertising, marketing, and public relations programs for the Cream system, the Jeni's® brand, and the promotion of Jeni's Ice Creams Scoop Shops. Currently, the Brand Fund Contribution is 2% of Net Sales. Cream may modify the amount of the Brand Fund Contribution with 30 days prior notice to franchisees, in an amount up to 4% of Net Sales.
This means that as a Cream franchisee, you will be required to pay a percentage of your net sales into the Brand Fund, which is used for marketing and advertising efforts. This contribution is mandatory and ongoing. The amount can be changed by Cream, but with a 30-day notice, and it can go up to 4% of net sales.
Cream has exclusive control over the Brand Fund, including the creative concepts, materials, campaigns, geographic market, media placement, and allocation. The Brand Fund may be used for various advertising and promotional activities, such as preparing video, audio, and written materials, sponsoring charitable events, and maintaining websites. Cream is not required to spend any amount on marketing within any particular market.
It is important to note that the grand opening advertising expenses of at least $20,000 do not count towards the Brand Fund Contribution. This initial advertising expense is separate from the ongoing contribution to the Brand Fund.