How will the Regional Advertising Fund be administered by Advanced Mobile Iv And Amiv?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
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.
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, the Regional Advertising Fund will be administered by Advanced Mobile Iv And Amiv in the same manner and under the same terms and conditions as the Marketing Fees, as outlined in Item 11 of the FDD. Franchisees are required to pay contributions to the cooperative administrator that Advanced Mobile Iv And Amiv designates, at the same time and in the same manner as royalty and advertising fees are paid to them.
Advanced Mobile Iv And Amiv will notify franchisees about the establishment, modification, and geographical boundaries of regional advertising regions. Franchisees within each region may be required to meet periodically to create and establish regional advertising programs. Each franchise location, including those owned by Advanced Mobile Iv And Amiv, its parent company, or affiliates, gets one vote at these meetings. If 65% of the 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. The contribution cannot exceed 2% of the franchisee's Gross Sales.
While the Regional Advertising Fund will not be audited, Advanced Mobile Iv And Amiv will prepare annual financial statements that franchisees can obtain upon written request. Prospective franchisees should note that there are no other written documents governing any cooperative advertising program besides what is described in the FDD. Understanding how these funds are managed and the potential impact on their business is crucial for franchisees.