Can Afuri Ramen Dumpling use Advertising Fees for maintaining and updating their website?
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.
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 can use advertising fees for maintaining and updating their website. Specifically, the 1% of revenue that franchisees contribute as an Advertising Fee can be used by Afuri Ramen Dumpling for various advertising and promotional activities.
This includes maintaining, administering, researching, directing, preparing, and placing advertising and promotional activities across different media such as internet pay-per-click campaigns, social media marketing, television, radio, and print. The advertising fees can also be used for marketing research and development, marketing surveys, public relations activities, and the development and maintenance of internet or e-commerce programs.
Furthermore, Afuri Ramen Dumpling can allocate these funds to marketing materials, decor and promotional materials, artwork, advertising services, and training related to marketing, customer service, and sales augmentation. The fees also cover the production and distribution of periodic newsletters, costs related to custom software applications used by franchisees for customer ordering, and the maintenance of the online portal used to share updates and information with franchisees. Importantly, the advertising fees can be used for maintaining and updating the Afuri Ramen Dumpling website.
In addition, Afuri Ramen Dumpling can use the advertising fees to cover reasonable salaries, accounting, collection, legal, and other costs related to these advertising and promotional activities. This gives Afuri Ramen Dumpling broad discretion in how they use the advertising fees to support the brand and the franchise system.