If the National Advertising Fund is reinstated for All Team, what is the purpose of the fund?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
A. National Advertising Fund. ATFC reserves the right to reinstate the National Advertising Fund ("Fund") at some future date. Said Advertising Fee will be paid into the Fund, which Fund shall be used to promote ATFC's brand, and publicize ATFC and ATFC franchises, which is consistent with the Section VI.A. These funds will not be used solely for the purpose of advertising for franchisee prospects. ATFC's affiliates shall contribute the same percentage for each Agency that it or its affiliates operate.
The Fund shall be maintained and administered by ATFC as follows: A National Advertising Council ("NAC") shall make strategic planning decisions. ATFC shall retain sole right to make any dayto-day decisions necessary to carry out the strategic planning decisions of the NAC. The NAC shall be comprised of four members made up of franchisees and the Director who will be an employee of ATFC. The franchisee members shall be elected annually by all franchisees of the System based upon one vote for each Agency which is in full compliance with its Franchise Agreement. The three franchisees with the highest number of votes shall serve, and if there is a tie, ATFC will decide.
The NAC shall review and approve or disapprove any long-range marketing plans that ATFC or other franchisees shall develop and the NAC may develop its own long range marketing plans. After a marketing plan has been approved by the NAC, ATFC shall implement the plan without further review by the NAC. ATFC reserve the right, in its sole discretion, to establish and modify, from time to time, the duties, organization, form, manner of operation, membership, methods of member selection, and all other aspects of the NAC (other than eligibility for voting) pursuant to such governing documents as ATFC may provide. Any deadlocks in the NAC shall be resolved by the decision of the Director of NAC.
FRANCHISEE acknowledges that the Fund is intended to maximize brand recognition, acceptance and use of the System, and that ATFC is not obligated, in administering the Fund, to make expenditures for FRANCHISEE which are equivalent or proportional to FRANCHISEE's contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures made by the Fund. The Fund, all contributions thereto, and any earnings thereon shall be used exclusively to meet any and all costs of maintaining, administering, directing, conducting, and preparing advertising, marketing, public relations and/or promotional programs and materials and any other activities which ATFC believes will enhance the System. All sums received for the Fund shall be maintained in an account separate from the other monies of ATFC and shall be used only as provided herein. ATFC shall maintain separate bookkeeping accounts for the Fund. ATFC shall provide unaudited financial statements of the account upon request by FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if the National Advertising Fund is reinstated, the advertising fee paid into the fund will be used to promote All Team's brand and publicize All Team and its franchises. The FDD specifies that these funds will not be used solely for advertising to attract new franchisees. All Team's affiliates will contribute the same percentage for each agency that they operate.
The fund is intended to maximize brand recognition, acceptance, and use of the All Team system. All Team is not obligated to make expenditures for a franchisee that are equivalent or proportional to the franchisee's contribution, nor is All Team obligated to ensure that any particular franchisee benefits directly or pro rata from the fund's expenditures. The fund, contributions, and earnings will be used exclusively for the costs of maintaining, administering, directing, and conducting advertising, marketing, public relations, promotional programs, materials, and any other activities All Team believes will enhance the All Team system.
All sums received for the National Advertising Fund will be maintained in a separate account from All Team's other monies and used only as specified in the franchise agreement. All Team will maintain separate bookkeeping accounts for the fund and provide unaudited financial statements of the account upon request by a franchisee. A National Advertising Council (NAC) comprised of four members (three franchisees and All Team's director) will make strategic planning decisions, while All Team retains the sole right to make day-to-day decisions to carry out the NAC's strategic planning. Franchisee members are elected annually by all franchisees in full compliance with their franchise agreement, with each agency having one vote. The three franchisees with the highest number of votes will serve on the NAC, and All Team will decide in the event of a tie.
The NAC will review and approve or disapprove any long-range marketing plans developed by All Team or other franchisees and may develop its own long-range marketing plans. After the NAC approves a marketing plan, All Team will implement the plan without further review. All Team reserves the right to establish and modify the duties, organization, form, manner of operation, membership, methods of member selection, and all other aspects of the NAC (other than eligibility for voting) pursuant to governing documents provided by All Team. Any deadlocks in the NAC will be resolved by the decision of the Director of NAC.