How will Afuri Ramen Dumpling use the Advertising Fees collected from franchisees?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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:
A. maintaining, administering, researching, directing, preparing, and placing advertising and promotional activities (including, among other things, the costs of preparing and conducting internet pay-per-click campaigns; social media marketing; television; radio; magazine and newspaper advertising campaigns; public relations programs and press releases);
B. marketing research and development;
C. marketing surveys and public relations activities;
D. development and maintenance of any Internet or e-commerce programs;
E. marketing materials;
F. decor and promotional materials;
G. artwork;
H. advertising services;
I. training related to marketing, customer service and sales augmentation;
J. production and distribution of periodic newsletters to provide you with industry news, suggestions, and advice on franchise operations;
K. our costs related to our custom or proprietary software application used by our franchisees for customer ordering;
L. maintaining and updating our website;
M. maintaining and updating our online portal (used to share updates and information regarding recipes, menu items, and related information with our franchisees);
N. maintaining and updating the self-order kiosk programs and systems (if any); and
O. our reasonable salaries, accounting, collection, legal and other costs related to all of the above.
Our internal artwork, advertising, promotion, and newsletter production costs and associated administrative costs are paid from the Advertising Fees. These will be calculated at our cost as established from time to time.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the company may use advertising fees collected from franchisees for a variety of advertising, marketing, and operational support activities. These activities can occur at the local, regional, national, internet, or international levels.
Specifically, Afuri Ramen Dumpling may use the advertising fees for maintaining and administering advertising, including internet pay-per-click campaigns, social media marketing, television, radio, magazine and newspaper advertising, and public relations programs. Funds may also go towards marketing research and development, surveys, public relations, e-commerce programs, marketing materials, decor, artwork, advertising services, and training related to marketing and customer service.
Additionally, Afuri Ramen Dumpling may use advertising fees for the production and distribution of newsletters, costs related to custom software applications used by franchisees for customer ordering, website maintenance, online portal maintenance for sharing recipes and menu updates, and self-order kiosk programs. The fees may also cover the company's reasonable salaries, accounting, collection, legal, and other costs related to these activities. The FDD states that internal artwork, advertising, promotion, and newsletter production costs, along with associated administrative costs, are paid from the Advertising Fees and are calculated at cost.