What power does Advanced Mobile Iv And Amiv have regarding cooperative advertising programs?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
n the form and have the content specified from time to time in the Operations Manual. When more than one Advanced Mobile IV franchisee serves a metropolitan area, we may direct that advertisements and listings will list all Advanced Mobile IV units operating within the distribution area of the directory, and you will contribute your equal share in the cost of the advertisement.
- G. Establishment of Advertising Programs. At any time and from time to time, we may designate local, regional, or national advertising coverage areas for the development of cooperative local or regional advertising and promotional programs. An "advertising coverage area" is defined as the area covered by a particular advertising medium such as television, radio, or other medium, as recognized in the media industry. We will designate the geographic boundaries of cooperative advertising and promotional programs and the respective advertising coverage areas of these programs. We have the power to require cooperatives to be formed, changed, dissolved, or merged. In the event of a disagreement, our determination of the coverage area will be final.
We will promptly notify you and our other franchisees of the establishment, modification, and geographical boundaries of regional advertising regions. We may require all franchisees located within each advertising region to meet periodically for the purpose of creating and establishing regional advertising programs. Each franchise and each operation we or our affiliates own and operate will be entitled to one vote at these meetings. For the purpose of this subsection, each operation we own will be deemed to be a franchise.
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 1 percent of that franchisee's Gross Sales. We will have the right to approve or disapprove the content of all advertising and no advertising or promotional plans or materials may be used or furnished without first obtaining our approval.
Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, Advanced Mobile Iv And Amiv has significant authority over cooperative advertising programs. Advanced Mobile Iv And Amiv may designate local, regional, or national advertising coverage areas and the geographic boundaries of cooperative advertising programs. The document defines an "advertising coverage area" as the area covered by a particular advertising medium, such as television or radio.
Advanced Mobile Iv And Amiv retains the power to require cooperatives to be formed, changed, dissolved, or merged. In the event of a disagreement regarding the coverage area, Advanced Mobile Iv And Amiv's determination will be final. This means that franchisees may be required to participate in advertising programs determined by Advanced Mobile Iv And Amiv, and the franchisor has the final say in any disputes about the scope or structure of these programs.
Furthermore, Advanced Mobile Iv And Amiv will notify franchisees and other franchisees of the establishment, modification, and geographical boundaries of regional advertising regions. Advanced Mobile Iv And Amiv may require all franchisees within each advertising region to meet periodically to create and establish regional advertising programs. Each franchise operation, including those owned by Advanced Mobile Iv And Amiv or its affiliates, has one vote at these meetings. If 65% of the franchisees in an advertising region vote to contribute to a regional advertising program, all franchisees within that region are obligated to contribute to the Regional Advertising Fund. However, no advertising region can require a franchisee to contribute more than 1% of their Gross Sales to the Regional Advertising Fund. Advanced Mobile Iv And Amiv retains the right to approve or disapprove the content of all advertising, and no advertising or promotional plans or materials can be used without Advanced Mobile Iv And Amiv's approval.
If advertising region members cannot resolve any issue affecting the establishment or effective functioning of the advertising program, any member franchisee can request that Advanced Mobile Iv And Amiv resolve the issue, and Advanced Mobile Iv And Amiv's resolution will be final and binding on all members. Advanced Mobile Iv And Amiv will administer each Regional Advertising Fund in the same manner and upon the same terms and conditions as the Marketing Fees. This gives Advanced Mobile Iv And Amiv considerable control over the cooperative advertising efforts, including the ability to mandate participation, determine the advertising content, and resolve disputes.