What is the advertising fee contribution for Advanced Mobile Iv And Amiv franchisees?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
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Marketing Fees
AMIV FRANCHISE DISCLOSURE DOCUMENT 32
Beginning in the 13th month of franchise relationship, you are required to pay to us 1% of your monthly Gross Sales as an Advertising Fee (see Item 6, above). We reserve the right to temporarily lower, suspend, or rebate the Advertising Fee at any time, upon prior written notice to you and to our other franchisees. We will administer the capital we receive as Marketing Fees and direct all regional and national advertising programs with sole discretion over the creative ideas, materials, endorsements, placement, and allocation of overhead expenses. We may use the Advertising Fee to maintain, administer, direct, prepare, and review national, regional, or local advertising materials and programs as we, in our sole discretion, deem proper. We are under no obligation to use the Advertising Fee to ensure that expenditures are proportionate to contributions of franchisees for any given market area or that any franchise benefits directly or proportionately from the development or placement of advertising. We shall not be obligated to expend all or any part of the Marketing Fees we receive during any specific period.
Each of our company-owned and affiliate-owned AMIV operations offering products and services similar to our franchisees will make advertising contributions equivalent to the contribution percentage required of our franchisees.
Any Marketing Fees not used in the fiscal year in which they were contributed will be applied and used for advertising expenses in the following year.
We require that most advertising materials note that franchises are available. We do not intend to use marketing fees or assessments we collect from our franchisees for advertising that is principally to solicit the sale of new franchises.
Summary of Marketing Fee Contributions and Expenses for Fiscal Year Ended December 31, 2022
| Expenses: Advertising and Promotion | $0 | 0.0% |
|---|---|---|
| Total expenses: | $0 | 0.0% |
| Advertising fee contributions*: | $0 | 0.0% |
| Excess of expenses over contributions: | $0 | 0.0% |
The Marketing Fees are administered by us. The Marketing Fees are not audited. We receive payment from the Marketing Fees for providing certain marketing support services. You may obtain an accounting of the Marketing Fees and expenditures upon written request to us.
Local Advertising Expenditures
In addition to your obligation to pay to the Advertising Fee, we recommend that each month you expend in your local market at least 1% of your Gross Sales to advertise and promote your Franchise.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 28–36)
What This Means (2023 FDD)
According to the 2023 Advanced Mobile Iv And Amiv Franchise Disclosure Document, franchisees are required to pay an Advertising Fee starting in the 13th month of their franchise relationship. This fee is 1% of their monthly Gross Sales, which is paid to Advanced Mobile Iv And Amiv. However, Advanced Mobile Iv And Amiv retains the right to temporarily lower, suspend, or rebate this Advertising Fee at any time, provided they give prior written notice to all franchisees.
Advanced Mobile Iv And Amiv has sole discretion over how the Marketing Fees are used, including the creative ideas, materials, endorsements, placement, and allocation of overhead expenses for regional and national advertising programs. Advanced Mobile Iv And Amiv is not obligated to ensure that advertising expenditures are proportionate to the contributions of franchisees in any given market area, nor are they obligated to ensure that any franchise benefits directly or proportionately from the advertising. They are also not obligated to spend all or any part of the Marketing Fees received during any specific period.
In addition to the mandatory Advertising Fee, Advanced Mobile Iv And Amiv recommends that franchisees spend at least 1% of their Gross Sales each month on local advertising and promotion. Franchisees must submit all advertising copy and promotional materials to Advanced Mobile Iv And Amiv for approval before use, including website content. All advertising and promotional materials must include the wording "franchises available."
Franchisees may also be required to contribute to a Regional Advertising Fund if 65% of the franchisees in their advertising region vote to do so. Contributions to this fund cannot exceed 2% of a franchisee's Gross Sales. These funds are administered by Advanced Mobile Iv And Amiv in the same manner as the Marketing Fees. The franchisee's contributions must be paid to the cooperative administrator that Advanced Mobile Iv And Amiv designates, when and in the same manner as the Royalty Fee and Advertising Fee payments are paid to them.