What does the Auntie Annes Ad Fund support?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
nd. We have sole authority to direct all advertising programs and promotions and uses of the Ad Fund, with sole control over the creative concepts, materials, and media used in the programs, and the placement and allocation of advertising. We reserve the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales we deem appropriate.
We may use the Ad Fund to meet the costs of administering, preparing, and conducting national, local, or regional advertising, promotional, or brand building programs of any kind, including the cost of (i) preparing and conducting television, radio, magazine, newspaper, and digital advertising campaigns and other public relations activities (including, but not limited to, for purposes of brand reputation management), (ii) employing public relations firms and advertising agencies to assist in these activities, and (iii) conducting other activities that are directly or indirectly designed to promote the System, its franchisees, and/or increase System sales, such as limited-time menu offerings, crew incentives, franchisee incentive and/or promotional programs, customized materials (e.g., cups), up-sell programs, guest response programs, manager/employee recognition programs, quality assurance and food safety programs, mystery shop and shopper programs, brand websites and ordering platforms, brand applications, social media account administration and promotion, and in-store equipment and technologies related to such marketing programs. We may use the Ad Fund to compensate us for the reasonable administrative costs and overhead we incur in activities related to advertising and promotional programs, including new product development; market research; preparing advertising and promotional materials; Digital Marketing (as defined below); working with public relations firms, advertising agencies, advertising placement services, and creative talent; reimbursing franchisee advisory council meeting expenses; developing and maintaining, and paying third parties for the development and maintenance of, internet sites, applications, and other equipment and technologies related to marketing programs.
The advertising and promotions that we conduct are intended to maximize general public recognition and patronage of the System generally in the manner that we determine to be most effective. We reserve the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales we deem appropriate. We will not spend the Ad Fund in a manner that (i) exclusively benefits our licensees that manufacture and sell Approved Products, if any, or (ii) is principally a solicitation for the sale of franchises. We have no obligation to make expenditures from the Ad Fund that are proportionate or equivalent to your contributions, ensure that you benefit directly or proportionately or in any amount from the placement of advertising, or ensure that any advertising impacts or penetrates your area.
Currently, we use one or more national and/or regional advertising agencies, as well as our inhouse marketing department, to develop and produce our marketing materials. In Fiscal Year
2023, 28% of the Ad Fund was spent on media placement (including tv, radio, print, digital, and social media placement);
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the Ad Fund is used for advertising and promoting Auntie Annes shops, proprietary marks, and the overall system. The fund can cover various costs related to national, local, or regional advertising, promotional, and brand-building programs. These include television, radio, magazine, newspaper, and digital advertising campaigns, as well as public relations activities for brand reputation management. The Ad Fund may also be used to employ public relations firms and advertising agencies.
Specifically, the Ad Fund supports activities designed to promote the Auntie Annes system, its franchisees, and/or increase system sales. Examples include limited-time menu offerings, crew incentives, franchisee incentive and/or promotional programs, customized materials, up-sell programs, guest response programs, manager/employee recognition programs, quality assurance and food safety programs, mystery shop programs, brand websites and ordering platforms, brand applications, social media account administration and promotion, and in-store equipment and technologies related to such marketing programs.
The franchisor, or an affiliate, administers the Ad Fund and has sole authority to direct all advertising programs and promotions. This includes control over creative concepts, materials, media used, and the placement and allocation of advertising. Auntie Annes reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales they deem appropriate. The franchisor also uses the Ad Fund to cover administrative costs and overhead related to advertising and promotional programs, such as new product development, market research, preparing advertising materials, digital marketing, and working with advertising agencies.
In Fiscal Year 2023, the Ad Fund's expenditures were allocated as follows: 28% on media placement (including TV, radio, print, digital, and social media); 37% on production and agency fees (including promotions, press relations, agency retainer fees and creative services, market research fees, and digital team salaries); 9% on guest response programs and menu innovation projects; 25% on brand and category marketing expenses (including salaries of marketing personnel); and 1% on administrative expenses. The franchisor is not obligated to ensure that advertising expenditures are proportionate to a franchisee's contributions or that a franchisee benefits directly from the advertising.