What are the franchisee's obligations regarding advertising and marketing for All States M.E.D. as described in Item 8, and how does this relate to the franchisor's assistance with advertising in Item 11?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
tive, bookkeeping, accounting, or inventory control procedures.
3. Advertising and Promotion:
- a. Local and Grand Opening Advertising. You must spend a minimum of 2% of Gross Revenues or $1,000 per month, whichever is greater, on local advertising pursuant to our guidelines. You agree to spend a minimum of $3,000 - $10,000 on Grand Opening Advertising to promote the opening of your business, pursuant to our guidelines. (Section 11.2 of the Franchise Agreement).
- b. Advertising Fund. We do not charge a National Advertising Fee nor maintain an Advertising Fund. (Section 11.1 of the Franchise Agreement).
- c. Use of Your Own Advertising Material. You may use your own advertising materials provided that you submit them to us and we approve them, in writing, and they adhere to federal, state and local law. (Section 11.2 of the Franchise Agreement).
- d. Advertising Council and Advertising Cooperatives. 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. (Section 11.3 of the Franchise Agreement).
- e. 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
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees have specific obligations regarding advertising and marketing, as detailed in Item 11. Franchisees are required to spend a minimum of 2% of Gross Revenues or $1,000 per month, whichever is greater, on local advertising, adhering to the franchisor's guidelines. Additionally, a minimum of $3,000 to $10,000 must be spent on Grand Opening Advertising to promote the business launch, also following the franchisor's guidelines.
All States M.E.D. does not charge a National Advertising Fee nor maintain an Advertising Fund. Franchisees can use their own advertising materials, but these must be submitted to All States M.E.D. for written approval and must comply with federal, state, and local laws. Franchisees are restricted from establishing a presence or marketing on the Internet without the franchisor's written consent. All States M.E.D. retains the sole right to market on the Internet, including websites, domain names, and search engine optimization. Franchisees may be asked to provide content for the franchisor's Internet marketing and must adhere to the franchisor's internet usage rules and policies.
In terms of assistance, All States M.E.D. provides guidance in establishing prices for products and services. While All States M.E.D. offers assistance with advertising, the franchisee is responsible for adhering to the brand's standards and legal requirements. The franchisor also retains control over internet marketing and the use of trademarks online, ensuring brand consistency. This division of responsibilities means franchisees have some autonomy in local advertising with franchisor oversight, while the franchisor manages the broader online presence.