Can the Auntie Annes Ad Fund be used for guest response programs?
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 ord
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 can be used for guest response programs. The document states that the Ad Fund may be used to meet the costs of administering national, local, or regional advertising, promotional, or brand-building programs of any kind, including guest response programs.
Specifically, the Ad Fund can cover the costs of activities directly or indirectly designed to promote the Auntie Annes system, its franchisees, and/or increase system sales. These activities include guest response programs, among others such as limited-time menu offerings, crew incentives, franchisee incentive and/or promotional programs, customized materials, up-sell programs, manager/employee recognition programs, quality assurance and food safety programs, and mystery shop programs.
In fiscal year 2023, 9% of the Ad Fund was allocated to guest response programs and menu innovation projects. This demonstrates that Auntie Annes has previously used the Ad Fund for guest response initiatives. However, Auntie Annes retains sole authority to direct all advertising programs and promotions and uses of the Ad Fund.