What is the Lees Famous Recipe Brand Cooperative Advertising Fund Fee used for?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4. Brand Cooperative Advertising Fund Fee. The advertising fee is used to defray the cost of producing and/or purchasing radio, television, internet, social media or printed advertising
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the Brand Cooperative Advertising Fund Fee is used to cover the expenses associated with producing and/or purchasing various forms of advertising. These include radio, television, internet, social media, and printed advertising materials.
The Brand Cooperative Advertising Fund Fee is 3% of Gross Sales, payable weekly on the Payment Date via electronic funds transfer. Lees Famous Recipe, however, may adjust the amount of the Brand Cooperative Advertising Fund Fee with sixty days notice, but the fee may not exceed 4% of Gross Sales.
It's important to note that in 2008, LFR Inc. entered into license agreements with LFR Licensees that included advertising royalty fees at a reduced rate of 1% of Gross Sales. As of December 31, 2024, there are 71 LFR Licensees who pay this reduced advertising royalty fee rate. This discrepancy highlights that advertising fee obligations can vary significantly based on the specific agreement in place.