Is a franchisee required to participate in a local or regional advertising cooperative for All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not have an advertising council composed of franchisees that advise us on advertising policies at this time, but reserve the right to form one in the future. We do not require you to participate in a local or regional advertising cooperative.
11.4 Internet Advertising
You are restricted from establishing a presence on, or marketing on the Internet without our written consent. We have an Internet website that provides information about the System and our franchises. All information posted on our website or any linked webpages must be approved by us before it is posted. We retain the sole right to market on the Internet, including the use of websites, domain names, uniform resource locators, keywords, linking, search engines (and search engine optimization techniques), banner ads, meta-tags, marketing, auction sites, e-commerce, and co-branding arrangements. You may be requested to provide content for our Internet marketing and you must follow our intranet and Internet usage rules, policies and requirements. We retain the sole right to use the Marks on the Internet, including on websites, as domain names, directory addresses, search terms and meta-tags, social media pages and in connection with linking, marketing, co-branding and other arrangements. We retain the sole right to approve any linking to, or other use of, our website. You are not permitted to use a domain name containing our marks in the URL.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees are not required to participate in a local or regional advertising cooperative. However, All States M.E.D. reserves the right to form an advertising council composed of franchisees in the future to advise on advertising policies.
While participation in a cooperative is not mandatory, franchisees are required to engage in local advertising. Specifically, franchisees must spend a minimum of 2% of gross revenues or $1,000 per month, whichever is greater, on local advertising based on All States M.E.D.'s guidelines. Additionally, franchisees are required to spend between $3,000 and $10,000 to promote the opening of their franchised business, also according to All States M.E.D.'s guidelines.
All States M.E.D. also maintains control over internet advertising. Franchisees are restricted from establishing an online presence or marketing on the internet without written consent from All States M.E.D. The company retains the sole right to market on the internet, including the use of websites, domain names, search engines, and social media. Franchisees may be asked to provide content for All States M.E.D.'s internet marketing efforts and must adhere to the company's internet usage rules and policies.