Can the Auntie Annes Ad Fund be used for Digital Marketing?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the Ad Fund can be used for digital marketing. Auntie Anne's has the authority to use the Ad Fund to cover the costs of various advertising, promotional, and brand-building programs, including digital advertising campaigns. These campaigns may include television, radio, magazine, newspaper, and digital advertising, as well as public relations activities for brand reputation management.
The Ad Fund can also be used to compensate Auntie Anne's for administrative costs and overhead related to advertising and promotional programs, such as new product development, market research, and preparing advertising materials. This includes expenses related to Digital Marketing, working with public relations firms and advertising agencies, and maintaining websites and applications related to marketing programs.
Auntie Anne's, or its affiliates, has the discretion to establish and operate various Digital Marketing initiatives to promote the Proprietary Marks, individual Shops, and the entire network. These initiatives may include websites, social media accounts, applications, keyword purchasing programs, and email marketing campaigns. However, franchisees are generally restricted from conducting their own Digital Marketing using the Proprietary Marks without written consent from Auntie Anne's, and any permitted Digital Marketing must adhere to the franchisor's standards and approved materials.