Who administers the advertising program for Afuri Ramen Dumpling franchises?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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Advertising Funds
We will administer the funds we receive for Advertising 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 promote our franchises through any medium we choose, such as print, internet (including website and social media) and public relations. We may use in-house advertising departments and may use regional or national advertising agencies. We may provide to you advertising materials and point of sales aids for you to use in your local advertising and promotional efforts.
We may use the Advertising Fees to maintain, administer, direct, prepare, and review national, regional, or local advertising materials and programs and public relations efforts, as we, in our sole discretion, deem proper. We may use the Advertising Fees to maintain and update our website.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, the franchisor, Afuri Franchise Inc., administers both the general advertising program and any regional advertising programs. Afuri Ramen Dumpling has sole discretion over the creative ideas, materials, endorsements, placement, and allocation of overhead expenses for the general advertising program. They can use various media such as print, internet, and public relations and may employ in-house departments or external agencies.
For regional advertising, if 75% of franchisees in a region vote to contribute to a regional advertising program, all franchisees in that region must participate. However, no franchisee can be required to contribute more than 2% of their revenue to a Regional Advertising Fund. Afuri Ramen Dumpling administers each Regional Advertising Fund in the same manner as the general Advertising Fee.
This means that while franchisees may have some influence on regional advertising through voting, Afuri Ramen Dumpling ultimately controls how all advertising funds are spent. Franchisees are required to pay advertising fees, and these fees may not necessarily benefit the franchisee directly or proportionately to their contribution. Additionally, company-owned Afuri operations do not contribute to the advertising fund.