What general operating expenses can All Team defray with the Advertising Fund?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
No part of the Advertising Fund will be used by us to defray any of our general operating expenses other than those reasonably allocable to such advertising, which includes but is not limited to the cost of maintaining, administering, directing, placing and preparing national advertising materials, programs and public relations activities, the cost of employing advertising agencies and public relations firms to assist therewith, research and development and reasonable salaries, expenses, administrative costs and overhead as we incur in activities reasonably related to the administration or direction of the Advertising Fund and its advertising programs.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisor can use the Advertising Fund to cover general operating expenses that are reasonably allocable to advertising. These expenses include the costs associated with maintaining, administering, directing, placing, and preparing national advertising materials, programs, and public relations activities. All Team can also use the fund to cover the cost of employing advertising agencies and public relations firms, as well as for research and development related to advertising efforts.
Additionally, the Advertising Fund can be used to pay for reasonable salaries, expenses, administrative costs, and overhead that All Team incurs in activities reasonably related to the administration or direction of the Advertising Fund and its advertising programs. This means that while the fund is primarily for advertising, some of All Team's internal costs associated with managing the advertising efforts can be covered.
All Team emphasizes that the Advertising Fund is intended to maximize brand recognition. The document specifies that All Team is not obligated to make expenditures for individual franchisees that are equivalent or proportional to their contributions, nor are they required to ensure that any particular franchisee benefits directly or pro rata from the fund's expenditures. This highlights that the fund is managed for the overall benefit of the All Team brand rather than for the direct benefit of individual franchise locations.