Can Afuri Ramen Dumpling use Advertising Fees for internet pay-per-click campaigns?
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);
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the company has the right to use advertising fees for internet pay-per-click campaigns. Afuri Ramen Dumpling may use contributions and any earnings from advertising fees received from franchisees for maintaining, administering, researching, directing, preparing, and placing advertising and promotional activities, including the costs of preparing and conducting internet pay-per-click campaigns.
This means that a portion of the 1% of total revenue that franchisees pay as an advertising fee could be allocated to online advertising initiatives managed by Afuri Ramen Dumpling. These campaigns are intended to promote the brand and drive business to both franchised and company-owned locations.
As the franchisee, you have no control over how these advertising funds are spent. Afuri Ramen Dumpling has sole discretion over the creative ideas, materials, endorsements, media placement, and allocation of monies related to the use of the advertising fee. This is a fairly standard practice in franchising, where the franchisor controls the brand's marketing strategy to ensure consistency and effectiveness.