Are there any limits on the salaries All Team can pay from 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 advertising fund can be used to cover reasonable salaries related to the administration and direction of advertising programs. Specifically, All Team can use the advertising fund for "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."
This means that while there isn't a strict numerical limit on salaries, they must be "reasonable" and tied to advertising-related activities. This gives All Team some discretion, but it also implies that salaries should align with industry standards for similar roles.
For a prospective franchisee, this indicates that a portion of their advertising fee could be used to compensate All Team employees involved in managing advertising efforts. While the FDD does not specify a cap on these salaries, the "reasonable" qualifier suggests that franchisees could potentially challenge excessive or unjustified salary allocations. It would be prudent for a potential franchisee to inquire about the typical salary ranges and the specific roles funded by the advertising fund to ensure transparency and accountability.