factual

What is the Kitchen Solvers Brand Fund Fee based on?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

In addition to your local marketing obligations, you must pay us a Brand Fund Fee in an amount equal to 1% of your monthly Gross Sales. We may increase the maximum annual contribution upon 30 days' prior written notice to you.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–31)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, franchisees must pay a Brand Fund Fee equal to 1% of their monthly Gross Sales. This fee contributes to the Brand Fund, which Kitchen Solvers manages at its discretion to promote the Kitchen Solvers system and products. The FDD states that Kitchen Solvers may increase the maximum annual contribution to the Brand Fund, but they must provide franchisees with 30 days' prior written notice before doing so.

Kitchen Solvers has the authority to use the Brand Fund for marketing and promotion programs, selecting the media, content, and scope of advertising. These programs may include internet, social media, television, radio, newspapers, magazines, and other publications at the local, regional, or national level. Kitchen Solvers can also use the fund to reimburse itself for costs related to these marketing efforts, including employee compensation for those involved in creating and managing the programs.

It is important to note that Kitchen Solvers is not obligated to spend any specific amount on marketing in a franchisee's particular area or territory, nor are they required to ensure that franchisees directly benefit from advertising or marketing efforts. Any excess funds not spent during a fiscal year will be carried over for future use. Franchisees should be aware that the Brand Fund is not a trust or escrow account and that Kitchen Solvers retains ownership and control over the funds, with no fiduciary duties to the franchisees regarding the fund's management.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.