Who bears the expense for pre-opening local advertising for an Antioch Pizza Shop?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to conduct local advertising and marketing. After you open your Antioch Pizza Shop Business, you must spend a minimum of 1% of gross revenues each calendar month on local advertising and promotion of your Antioch Pizza Shop Business, in addition to the 1% per month Marketing Services Fund you pay to us. You must submit proof of local marketing expenditures to us quarterly. In addition, you must conduct adequate pre-opening local advertising at your sole expense, in accordance with our directions and assistance. You will determine the amount of pre-opening advertising that you must spend to adequately promote your Antioch Pizza Shop Business prior to opening.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 29–35)
What This Means (2025 FDD)
According to the 2025 Antioch Pizza Shop Franchise Disclosure Document, the franchisee is responsible for covering the costs of pre-opening local advertising. The FDD specifies that the franchisee must conduct adequate pre-opening local advertising at their sole expense, following the directions and assistance provided by Antioch Pizza Shop. The franchisee is also responsible for determining the amount to be spent on pre-opening advertising to adequately promote their Antioch Pizza Shop business before its opening.
This means that prospective Antioch Pizza Shop franchisees need to budget for these pre-opening advertising expenses in addition to the ongoing advertising and marketing costs after the business is operational. After opening, franchisees must spend a minimum of 1% of gross revenues each calendar month on local advertising and promotion, in addition to the 1% per month Marketing Services Fund contribution paid to Antioch Pizza Shop.
Franchisees should carefully consider the potential costs of pre-opening advertising and factor this into their overall investment. It is important to discuss with Antioch Pizza Shop what they consider to be 'adequate' pre-opening advertising and to get a clear understanding of the expected level of expenditure. This will help in creating a realistic budget for launching the franchise. Franchisees should also be aware that all marketing materials they intend to use must be pre-approved by Antioch Pizza Shop.