factual

How many members are on the National Advertising Council (NAC) for All Team, and who are they?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD pages 33–34)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, the National Advertising Council (NAC) plays a role in strategic planning decisions for the brand's advertising efforts. The NAC consists of four members. Three of these members are All Team franchisees, elected annually by all franchisees in the system, with each agency in full compliance with its Franchise Agreement receiving one vote. The three franchisees with the highest number of votes are selected, and in the event of a tie, All Team will decide the outcome. The fourth member is the Director, who is an employee of All Team.

The NAC is responsible for reviewing and either approving or disapproving long-range marketing plans developed by All Team or its franchisees, and it can also develop its own marketing plans. Once a plan is approved by the NAC, All Team implements it without further review. However, All Team retains the right to modify various aspects of the NAC, including its duties, organization, membership, and member selection methods, except for voting eligibility. Any deadlocks within the NAC are resolved by the Director of NAC.

For a prospective All Team franchisee, this means that they have the opportunity to participate in the brand's strategic advertising decisions through the election of franchisee representatives to the NAC. This provides a voice for franchisees in shaping the marketing direction of the All Team system. However, it's important to note that All Team ultimately retains significant control over the NAC's operations and decision-making, including the ability to resolve deadlocks and modify the council's structure. Franchisees should be aware that the advertising fund is intended to maximize brand recognition and that All Team is not obligated to make expenditures that directly benefit each franchisee proportionally to their contribution.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.