Where can I find more details about the Advertising Fee for an Afuri Ramen Dumpling franchise?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Advertising Fee. The Advertising Fee is described in more detail in Item 11 of this disclosure document. Advertising Fee payments are in addition to and exclusive of any sums that you may decide to spend on local advertising and promotion.
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- Regional Advertising Cooperative. Subject to our prior written approval, if at any meeting of the franchisees in an advertising region, 75% 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. Our company-owned outlets will not be required to participate in or contribute to regional advertising cooperatives. No advertising region may require any franchisee in that region to make a contribution to a Regional Advertising Fund in excess of 2% of that franchisee's Revenue.
Source: Item 6 — Other Fees (FDD pages 11–16)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, details regarding the Advertising Fee can be found in Item 11. The document also clarifies that payments made for the Advertising Fee are separate from any amounts a franchisee might choose to spend on local advertising and promotions.
Additionally, the FDD mentions a Regional Advertising Cooperative. If 75% of franchisees in a specific advertising region vote to contribute to a regional advertising program, all franchisees in that region, with the exception of company-owned outlets, are obligated to contribute to the regional advertising fund.
However, the contribution to a Regional Advertising Fund cannot exceed 2% of the franchisee's Revenue. Revenue is defined as all receipts generated by the franchise from any source, but does not include credits for returns, promotional discounts, or sales tax.