What does 'Marketing' represent in the context of Lees Famous Recipe franchise expenses?

According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the term 'Marketing' specifically refers to the total Brand Cooperative Advertising Fund Fees that franchisees are required to pay under the Franchise Agreement. This means that a portion of the fees franchisees pay goes into a collective fund used for brand-level advertising and marketing initiatives.

This is a common practice in franchising, where franchisees contribute to a marketing fund to promote the brand as a whole, rather than just their individual locations. These funds are typically used for regional or national advertising campaigns, online marketing, and other promotional activities designed to increase brand awareness and attract customers to all Lees Famous Recipe locations. The amount that franchisees contribute to this fund is defined in the franchise agreement.

Prospective franchisees should understand that these marketing fees are mandatory and represent a recurring expense. While the FDD defines what the 'Marketing' expense represents, it does not specify the exact percentage or amount of these fees. Franchisees should review the Franchise Agreement carefully to understand how these fees are calculated and how the funds are managed, as well as what say franchisees have in the cooperative's marketing decisions.