What is the definition of 'Brand Fund Contribution' for Cream franchisees?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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 hereby agree to contribute to the Brand Fund the amount that we prescribe (the "Brand Fund Contribution"). As of the Effective Date, the amount of the Brand Fund Contribution is 2% of your Net Sales. We may modify the amount of the Brand Fund Contribution from time to time with 30 days prior notice to you, provided that the total amount of the Brand Fund Contribution will not at any time exceed 4% of your Net Sales. The Brand Fund Contribution must be paid by you in the manner we designate from time to time, which may include collecting amounts in the same manner as the Royalty.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Brand Fund Contribution is the amount that Cream prescribes for franchisees to contribute to the brand promotion fund. As of the effective date of the franchise agreement, this contribution is 2% of the franchisee's Net Sales. Cream uses this fund to administer advertising, marketing, and public relations programs for the Cream system and the promotion of Jeni's Ice Creams Scoop Shops.
Cream retains exclusive control over the Brand Fund's programs and services, including creative concepts, materials, campaign strategies, and media placement. The Brand Fund can be used for various purposes, such as producing video, audio, and written materials, sponsoring charitable initiatives, developing digital presences, and administering advertising campaigns. Cream may also use the fund to cover administrative and overhead costs, including salaries and benefits for personnel managing the Brand Fund.
Cream has the right to modify the Brand Fund Contribution amount, provided they give franchisees 30 days' prior notice. However, the total contribution will not exceed 4% of Net Sales at any time. Franchisees must pay the Brand Fund Contribution in the manner designated by Cream, which may include collecting the amounts in the same way as the royalty fees.
Prospective franchisees should note that there is no guarantee that their individual shop will directly benefit from Brand Fund expenditures or in proportion to their contribution. Cream also does not guarantee any specific results from the Brand Fund's marketing or promotional activities. Cream can reduce or suspend Brand Fund Contributions or terminate the Brand Fund altogether, providing prior written notice. If the Brand Fund is terminated, the remaining balance will be spent in accordance with the terms outlined in the FDD.