Is All Team obligated to make advertising expenditures for franchisees that are equivalent or proportional to their contribution to the Advertising Fund?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The Advertising Fund is intended to maximize recognition of our brand and that we will not be obligated, in administering the Fund to make expenditures for you which are equivalent or proportional to your contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures made by the Fund. All sums received for the Fund will be maintained in an account separate from our other monies and will be used only as so provided. We will maintain separate bookkeeping accounts for the Fund and will provide an unaudited financial statement of the account if you so request in writing. If we do not use all of the funds in a particular fiscal year, the remaining funds will be carried over to the next fiscal year and be included in that year's advertising budget.
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, All Team is not obligated to make advertising expenditures for individual franchisees that are equivalent or proportional to their contribution to the Advertising Fund. The primary goal of the Advertising Fund is to maximize brand recognition. All Team retains the discretion to allocate the funds as it sees fit to achieve this goal. This means that some All Team franchisees may benefit more directly from advertising expenditures than others, regardless of their individual contributions to the fund.
All Team details that the Advertising Fund is used for various advertising and administrative expenses, including production costs, website maintenance, media placement, and salaries related to administering the fund. The funds are kept in a separate account and will not be used for the sale of franchises. If all funds are not used in a particular fiscal year, the remaining funds will be carried over to the next year's advertising budget.
All Team also has a National Advertising Council (NAC) that makes strategic planning decisions. The NAC comprises four members, with franchisee members elected annually. However, All Team retains the sole right to make day-to-day decisions necessary to carry out the NAC's strategic planning decisions. This structure ensures that franchisees have a voice in advertising strategies, but All Team ultimately controls the implementation and allocation of advertising resources.
For a prospective All Team franchisee, this means that while contributing to the Advertising Fund is mandatory, there is no guarantee of direct or proportional benefit from the fund's expenditures. Franchisees should focus on understanding the overall marketing strategy and brand-building efforts rather than expecting a direct return on their contribution in their specific area.