What is the requirement for spending on Local Advertising for an All States M.E.D. franchise?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Advertising | The greater of 2% of Gross Revenues or $1,000 per month | Monthly | You are required to spend these sums on local advertising and promotions pursuant to our guidelines. FA 11.2. |
| Grand Opening Advertising | $3,000 - $10,000 | Around the time of opening | You agree to pay these sums to promote the opening of your business pursuant to our guidelines. FA 11.2. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees are required to spend on local advertising. The amount required is the greater of 2% of gross revenues or $1,000 per month. These funds must be spent on local advertising and promotions, following the guidelines set by All States M.E.D.
This local advertising fee is a recurring monthly expense for All States M.E.D. franchisees. The 'greater of' condition means that as a franchisee's gross revenues increase beyond $50,000 per month, their required local advertising spend will also increase beyond the $1,000 minimum. This structure ensures that advertising investment scales with business growth.
Franchisees should carefully review the guidelines provided by All States M.E.D. to understand what types of advertising and promotional activities qualify for meeting this requirement. Understanding these guidelines is crucial for effective marketing and compliance with the franchise agreement. Additionally, franchisees are also responsible for a Grand Opening Advertising fee of $3,000 - $10,000.