What is the deadline for Ella Cafe franchisees to contribute to the Brand Marketing Fee?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.4 Brand Marketing Fee. Franchisor has established and administers a System-wide marketing, advertising and promotionsto facilitate regional and national advertising and marketing efforts to which Franchisee shall contribute a monthly fee.
On or before 5:00 PM EST on Tuesday each week (unless this day is a weekend or holiday, then on the business day before), Franchisee shall contribute to the Brand Marketing Fee an amount specified by Franchisor from time to time, but not to exceed 3% of Gross Sales for the applicable period ("Brand Marketing Fee").
The Brand Marketing Fee shall be due at the same time as the Royalty Fee.
Brand Marketing Fee shall be made at the time and in the manner provided for Royalty Fees in Section 4.
Franchisor shall notify Franchisee at least thirty (30) days before changing Brand Marketing Fee requirements.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees must contribute to the Brand Marketing Fee by 5:00 PM EST on Tuesday each week. If Tuesday falls on a weekend or holiday, the contribution is due on the business day immediately preceding Tuesday. The Brand Marketing Fee contribution is to be paid at the same time and in the same manner as the Royalty Fee.
The Brand Marketing Fee is determined by Ella Cafe, but will not exceed 3% of gross sales for the applicable period. Ella Cafe will notify franchisees at least thirty (30) days before changing Brand Marketing Fee requirements.
This fee is used for system-wide marketing, advertising, and promotions to facilitate regional and national advertising and marketing efforts. Ella Cafe has sole control over the creative concepts, materials, and media used in these programs, as well as their placement and allocation. The marketing programs may be local, regional, or system-wide, and Ella Cafe does not guarantee that any particular franchisee will directly benefit from the expenditures.