What is the definition of the 'Fund' as it relates to Marble Slab Creamery's national advertising?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will make a weekly contribution to a fund for national/regional advertising of the System (the "Fund") in an amount equal to the NAF Percentage multiplied by Franchisee's total Net Sales during the applicable period. Franchisor reserves the right in its absolute discretion to increase said dollar amount and percentage rate at any time throughout the term of this agreement to four percent (4%), respectively. Franchisor reserves the right, in its sole discretion, to authorize some but not all franchisees, which may or may not include Franchisee, to withhold all or a portion of its or their required contribution to the Fund, as Franchisor may determine in its sole discretion. Upon receipt of Franchisor's prior written approval, which Franchisor may subsequently modify or withdraw at any time upon 30 days written notice, Franchisee may withhold from its Fund contribution a dollar amount or percentage specified by Franchisor, in its sole discretion, provided that Franchisee must spend the dollar amount or percentage withheld on local advertising in accordance in Section 10.1.4. Such local advertising may, at Franchisor's option, be in lieu of or in addition to the local advertising required pursuant to Section 10.1.1. If Franchisor subsequently withdraws its approval of such withholding program, at the end of the 30 day notice period, Franchisee must immediately cease withholding any amounts from the Fund and must remit the full 2% of weekly Net Sales to the Fund. The Fund will be maintained and administered by Franchisor or its designee, as follows:
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the "Fund" refers to the fund for national/regional advertising of the Marble Slab Creamery system. Franchisees are required to contribute to this fund weekly, with the contribution amount calculated as the NAF Percentage multiplied by the franchisee's total Net Sales during the applicable period. The franchisor retains the right to increase the percentage rate to a maximum of four percent.
Marble Slab Creamery, at its discretion, can authorize some franchisees to withhold a portion or all of their contribution to the Fund. If a franchisee receives prior written approval to withhold funds, they must spend the withheld amount on local advertising as per Section 10.1.4 of the franchise agreement. This local advertising can be either in place of or in addition to the local advertising required by Section 10.1.1. However, Marble Slab Creamery can withdraw its approval of the withholding program with 30 days' written notice, after which the franchisee must resume full contributions to the Fund.
The Fund is maintained and administered by Marble Slab Creamery or its designee. This means that Marble Slab Creamery has control over how the money in the Fund is spent and used for advertising and promotional activities. The purpose of the Fund is to support the Marble Slab Creamery system through coordinated advertising efforts, but franchisees should be aware that the contribution rate can change and that participation in any withholding program is subject to franchisor approval.