Is an Auntie Annes franchisee required to participate in promotional campaigns established by the franchisor or their Advertising Cooperative, and who bears the cost?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
From time to time, we or your Advertising Cooperative (if any) may establish temporary or permanent promotional campaigns (e.g., limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs) applicable to the System as a whole or to specific advertising market areas. You are required to participate in these promotional programs at your own cost,
including the costs to purchase, lease and install all materials necessary to the promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items, and gift cards.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are required to participate in promotional campaigns established by either Auntie Annes or their Advertising Cooperative. These promotional campaigns can be temporary or permanent and may include limited-time offers, gift cards, coupons, loyalty programs, and other marketing programs.
The franchisee is responsible for covering the costs associated with participating in these promotional programs. These costs include purchasing, leasing, and installing all necessary materials, such as counter cards, posters, banners, signs, photographs, give-away items, and gift cards.
This requirement ensures brand consistency and participation in system-wide marketing efforts. While franchisees bear the costs, these campaigns are intended to drive sales and customer engagement, potentially benefiting the franchisee's business. Franchisees should factor these promotional costs into their operating budgets and be prepared to implement the required campaigns.