What advertising program does Advanced Mobile Iv And Amiv administer?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
If at any meeting of the franchisees in an advertising region, 65 percent of the franchisees vote to contribute to a regional advertising program, all franchisees within that region will be obligated to make a contribution to a regional advertising fund in the amount established by the vote (the "Regional Advertising Fund"). No advertising region may require any franchisee in that region to make a contribution to a Regional Advertising Fund in excess of 2 percent of that franchisee's Gross Sales. At the time a cooperative local or regional advertising or promotional program is developed, we will provide to you a list of all open AMIV™ franchises within your advertising coverage area.
We will administer each Regional Advertising Fund in the same manner and upon the same terms and conditions as the Marketing Fees outlined in this Item 11. (Franchise Agreement, Section 2.3). There are no other written governing documents that govern any cooperative advertising program. No Regional Advertising Fund will be audited. However, we will prepare annual financial statements that you may obtain upon written request to us.
Your contributions must be paid to the cooperative administrator we designate, when and in the same manner as the Royalty Fee and Advertising Fee payments are paid to us. Please refer to Items 6, 8, and 9 for more information about our advertising programs.
Other than the Marketing Fees and the Regional Advertising Funds described above, there are no other advertising funds in which you must participate.
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.
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, Advanced Mobile Iv And Amiv administers both a Marketing Fee program and Regional Advertising Funds. Franchisees are required to pay 1% of their monthly Gross Sales as an Advertising Fee beginning in the 13th month of their franchise relationship. Advanced Mobile Iv And Amiv has sole discretion over these Marketing Fees, directing regional and national advertising programs, including creative ideas, materials, endorsements, placement, and allocation of overhead expenses.
In addition to the Marketing Fees, Advanced Mobile Iv And Amiv may establish regional advertising regions, requiring franchisees within those regions to meet and create regional advertising programs. If 65% of franchisees in a region vote to contribute to a regional advertising program, all franchisees in that region are obligated to contribute to the Regional Advertising Fund. However, contributions to the Regional Advertising Fund cannot exceed 2% of a franchisee's Gross Sales. Advanced Mobile Iv And Amiv administers these Regional Advertising Funds similarly to the Marketing Fees.
Prospective franchisees should note that Advanced Mobile Iv And Amiv promotes franchises through internet and social media, and may also use print and direct mail media. While franchisees must participate in all advertising and promotional programs, they do not have the opportunity to approve or disapprove of the advertising and promotions. Franchisees are also encouraged to spend at least 1% of their Gross Sales each month on local advertising and promotional activities, subject to Advanced Mobile Iv And Amiv's approval of all advertising copy and materials.