What is the recommended minimum local advertising expenditure for an Afuri Ramen Dumpling franchise, expressed as a percentage of revenue?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.5.4 Recommended Minimum Local Advertising Expenditure. In addition to your obligation to pay Advertising Fees to us, we typically recommend you spend at least 1% to 3% of your Revenue (as defined in Section 2.6) each month to advertise and promote the Franchise in your local market. We may require you to report the nature, extent, and amount of these local expenditures, in the form and at the times we require in the Operations Manual.
- 2.5.5 Approval of Your Local Advertising. You will submit to us all advertising copy and other advertising and promotional materials, public relations programs and press releases, radio and television advertising, and specialty and novelty items, before you use them in your local advertising program. You will not use any advertising copy, public relations program, press release or other promotional material until we approve it. Your failure to conform to our provisions or requirements and subsequent non-action by us to require you to cure or remedy your failures and defaults will not be deemed a waiver of future or additional failures and defaults by you under this provision or any other provision of this Agreement.
- 2.5.6 Online and Social Media Marketing. We retain the exclusive right to use social media to promote our brand. You shall not use our brand or promote your Franchise in any form of social media without our prior written approval, which we may grant or withhold at our sole and absolute discretion. If we approve, then your use of social media must be in strict compliance with our standards as outlined in our Operations Manual. We will retain ownership and control of social media accounts.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees are recommended to spend on local advertising. Specifically, Afuri Ramen Dumpling typically recommends that franchisees spend at least 1% to 3% of their monthly Revenue on local advertising and promotion for their franchise. This expenditure is in addition to the 1% of total Revenue that franchisees must pay as an Advertising Fee to Afuri Ramen Dumpling itself.
This local advertising expenditure is intended to help franchisees promote their specific Afuri Ramen Dumpling location within their local market. While the franchisor recommends this level of spending, they may also require franchisees to report the nature, extent, and amount of these local advertising expenditures. These reports would be in a format and at times specified in the Operations Manual.
It is important to note that all advertising copy and promotional materials used by the franchisee for local advertising must be submitted to Afuri Ramen Dumpling for prior approval. Franchisees cannot use any advertising materials until they receive approval from the franchisor. Afuri Ramen Dumpling also retains exclusive rights to use social media to promote their brand, and franchisees must obtain written approval before promoting their franchise on social media.