How are Cream franchisees required to pay the Brand Fund Contribution?
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.
We will have exclusive control over all programs and services administered by the Brand Fund, with sole discretion 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 Digital Presences 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 programs, services, or expenditures at any time in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, franchisees must contribute to the Brand Fund, with the contribution currently set at 2% of Net Sales. Cream retains the right to modify this amount with 30 days' prior notice, but the contribution will not exceed 4% of Net Sales.
The Brand Fund Contribution must be paid in a manner designated by Cream, which may include collecting amounts in the same way as the Royalty fees. This gives Cream flexibility in how they collect the Brand Fund Contribution, potentially aligning it with existing payment processes for royalties to streamline the process for franchisees.
Cream has exclusive control over the Brand Fund's programs and services, including creative concepts, materials, campaigns, and their geographic market, media placement, and allocation. This means that while franchisees contribute to the fund, Cream decides how the money is spent to promote the brand. Cream may use the Brand Fund for various advertising, marketing, and public relations activities, as well as to cover administrative costs. Cream can also modify Brand Fund programs and expenditures at its discretion.