Can Antioch Pizza Shop franchisees engage in promotional programs such as donations?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
ded in the price of purchasing or leasing the Computer System.
Marketing Services Fund
We have established and will administer a Marketing Services Fund to which you must contribute monthly in the amount of 1% of gross revenues. All franchisees contribute to the fund at the same amount and rate. Our affiliate owned outlets are not required to contribute to the Marketing Services Fund; however, some affiliate owned outlets may contribute. We may elect to disseminate marketing and advertising content through Internet-based mediums and social media, television, radio and print media such as magazines, billboards, flyers, mailers and newspapers, and engage in promotional programs, including sponsorships, donations and gifts to customers and prospective customers. All decisions regarding advertising and marketing, including the type, quantity, timing, placement and choice of media, market areas and advertising agencies will be made by us. We manage the Marketing Services Fund in-house but on occasion we employ an outside consultant or agency to assist in the development, production and dissemination of marketing materials or programs. We may use the Marketing Services Fund to develop promotional and advertising materials for your use. In addition, we may provide sales training or printed material to assist you in selling menu items or merchandise. In 2024, the media used by the Marketing Services Fund was social media, our website and printed materials. The media coverage is currently local other than our website and social media that may extend to national exposure.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 29–35)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, franchisees are required to conduct local advertising and marketing, spending a minimum of 1% of gross revenues each calendar month on local advertising and promotion. Franchisees may use their own marketing materials, but all materials must be pre-approved in writing by Antioch Pizza Shop, who reserves the right to prohibit the use of materials deemed inappropriate.
Antioch Pizza Shop also engages in promotional programs, including donations, through a Marketing Services Fund. Franchisees must contribute monthly to this fund in the amount of 1% of gross revenues. While franchisees contribute to the fund, Antioch Pizza Shop makes all decisions regarding advertising and marketing, including the type, quantity, timing, placement, and choice of media.
In 2024, the Marketing Services Fund allocated 56% of its expenditures to donations and contributions (specifically, food). This indicates that Antioch Pizza Shop does engage in donation programs at the corporate level, funded by franchisee contributions. However, the FDD does not explicitly state whether franchisees can independently engage in donation programs beyond their required local advertising and marketing, which would require franchisor approval.