Cost-Recovery Operating Structure:

The Health Check TM program is run on a non-profit, cost-recovery basis and remains financially independent from the Heart and Stroke Foundation of Canada and the Federal Government.  The costs related to product and packaging review, testing, program administration, promotion, consumer education and product evaluation are recovered through modest fees collected from participating companies.  Any surplus funds will be used for nutrition education and the promotion of healthy eating for Canadians.
 

Fees:

To ensure that the program is widely accessible to all companies small or large, fees are modest and kept as low as possible.  The expenses involved in the production, promotion and sale of food are substantial.  To ensure the program is not used to leverage increased food prices, the fee structure is very low in relation to the cost of marketing and distributing a food product.  The fee structure considers many variables such as the number of product formulations (recipes) and formats, extent of program involvement and potential regional markets in which the product is available.
 

Fee Schedule:

There are two parts to the fee paid by companies: a one-time only Evaluation Fee and an annual Licensing Fee:

Evaluation Fee ($150 to $700) - The evaluation fee is paid by any company that wishes to include a product in the program.  The Evaluation Fee covers the cost of product evaluation and certification.  This fee is paid when the product is first submitted for consideration. This is a one-time only fee for each individual product.  There is a sliding scale for multiple submissions.

Licensing Fee (ranges from $1,225 to $3,625) - The Licensing Fee is paid annually per product that displays the Health Check symbol or program message.  The fee helps to cover the overall program costs.  In return, the company can participate in the educational and promotional aspects of the program and may display the Health Check symbol and program message on their packaging.

The fee structure is based on a sliding scale.  This scale varies based on the size of the market in which the licensed product is sold.  The scale enables product involvement for as little as $1,225 and no more than $3,625.   

An alternative Licensing Fee is available to small companies (Company sales less than $1,000,000 annually).  This fee is based on 0.49% of net sales of each participating product from the previous year or projected sales reconciled annually, with a minimum fee of $300 per item.
 

Licensing Fee Maximums:

To ensure that all companies, regardless of size, have various fee options available and to limit their total potential cost and encourage additional product participation, there are set limits on participation fees.  There are two types of Licensing Fee maximums:

1.  Food Category Maximum:   Reached when a company has fourteen (14) or more product formats in a given food category (ranging from $16,500 to $49,500) depending on the size of the market the product line is available.

2.  Corporate Maximum:   Reached when a company has four (4) or more Food Category Maximums (ranging from $66,000 to $180,000) depending on the size of the market the company products are available.

The Heart and Stroke Foundation is committed to providing clear and helpful information about Health Check.  If you wish to obtain more detailed information, please feel free to contact us at 613-569-4361 ext 255 or at chetuneuman@hsf.ca

 
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Last Updated ( Friday, April 04, 2008 )
 
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