Who directs the Devon Creek Brand Fund?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
ent (3%) of monthly Gross Revenue. Payments will be made in the same manner and time as the Royalty Fees.
- 13.3.2. Franchisor shall direct the Brand Fund and shall have sole discretion to approve or disapprove the creative concepts, materials and media used in such programs and the placement and allocation thereof. Franchisee agrees and acknowledges that the Brand Development Fund is intended to maximize general public recognition and acceptance of the Marks and enhance the collective success of all Franchised Businesses operating under the System.
- 13.3.3. Franchisor may use the Brand Development 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).
- 13.3.4. The Brand Development 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 Development 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 Development Fund contributions. The Brand Development Fund and its earnings shall not otherwise inure to Franchisor's benefit except that any resulting technology and intellectual property shall be deemed the property of Franchisor.
- 13.3.5. Franchisor will prepare an unaudited annual statement of the Brand Development Fund's operations and will make it available to Franchisee upon request.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the Brand Fund is directed by the Franchisor. Devon Creek has sole discretion to approve or disapprove the creative concepts, materials, and media used in advertising programs, including their placement and allocation. The Brand Fund is intended to maximize public recognition and acceptance of the Devon Creek marks and enhance the collective success of all franchised businesses operating under the Devon Creek system.
Devon Creek may use the Brand Fund to cover costs related to developing, preparing, producing, directing, administering, and disseminating advertising, marketing, promotional, and public relations materials. This includes various media such as television, radio, magazines, social media, newspapers, and electronic advertising campaigns, as well as direct mail, outdoor billboard advertising, public relations activities, marketing research, advertising agencies, website development, and personnel costs for internally administered advertising.
The Brand Fund will not be used for Devon Creek's general operating expenses, except for reasonable administrative costs and overhead related to the administration and direction of the Brand Fund. Devon Creek reserves the right to include "Franchises Available" or similar language and contact information in advertising produced with Brand Development Fund contributions. Franchisees should be aware that Devon Creek undertakes no obligation to make expenditures for any 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.