Who has discretion over the advertising and promotion related to the Advertising Fee for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
You will pay to us 1% of your total Revenue (as defined in Section 2.6) each month for the preceding month as an "Advertising Fee".
The precise timing and method of payment for the Royalty Fee will be as described in our Operations Manual.
- 2.3.1 Advertising Fee payments are in addition to and exclusive of any sums that you may decide to spend on local advertising and promotion.
We have sole discretion over the creative ideas, materials, endorsements, media, placement, and allocation of monies related to use of the Advertising Fee.
- 2.3.2 You recognize the value of advertising and the importance of the standardization of advertising and promotion to the furtherance of the goodwill and the public image of the Afuri system and the System.
We may use all contributions and any earnings from the Advertising Fees we receive from you in local, regional, national, Internet, or international advertising for:
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 FDD, Afuri Ramen Dumpling franchisees are required to pay an Advertising Fee of 1% of their total Revenue each month. Afuri Ramen Dumpling retains sole discretion over the creative ideas, materials, endorsements, media placement, and allocation of monies related to the use of this Advertising Fee.
This means that while franchisees contribute to the advertising fund, Afuri Ramen Dumpling has the final say in how those funds are spent. Franchisees do not have control over the advertising content, strategies, or where the advertising is placed. Afuri Ramen Dumpling may use these fees for local, regional, national, Internet, or international advertising.
Afuri Ramen Dumpling may use the advertising fees for various activities, including preparing and placing ads, marketing research and development, marketing surveys, developing internet or e-commerce programs, creating marketing materials, and maintaining their website and online portals. They can also use the funds to cover their internal costs related to artwork, advertising, promotion, newsletter production, and associated administrative expenses.
In addition to the Advertising Fee, Afuri Ramen Dumpling typically recommends that franchisees spend 1% to 3% of their Revenue each month on local advertising and promotion. However, all advertising copy and promotional materials used by the franchisee must be submitted to Afuri Ramen Dumpling for prior approval.