How often must a Baya Bar franchisee provide an expenditure report for Local Advertising?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
spend monthly, throughout the term of this Agreement, not less than one percent (1%) of Franchisee's Gross Revenue per month on advertising for the Franchised Business in the Territory ("Local Advertising").
- 13.2.2 Within ten (10) business days of Franchisor's request, Franchisee shall provide a quarterly expenditure report accurately reflecting Franchisee's Local Advertising expenditures for the preceding quarterly period. The following costs and expenditures incurred by Franchisee shall not be included in Franchisee's expenditures on Local Advertising for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; (iv) charitable, political or other contributions or donations.
- 13.2.3 Franchisee shall spend at least Seven Thousand Five Hundred Dollars ($7,500.00) on Local Advertising and pro
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must provide a quarterly expenditure report for local advertising. This report must accurately reflect the franchisee's local advertising expenditures for the preceding quarterly period. The report is due within ten business days of Baya Bar's request.
Certain costs and expenditures are excluded from the local advertising expenditure report unless Baya Bar approves them in writing. These include incentive programs for employees or agents, research expenditures, salaries and expenses for personnel attending advertising meetings, workshops, or other marketing activities, and charitable, political, or other contributions or donations.
Baya Bar may require franchisees to spend at least 1% of their gross revenue per month on local advertising. Additionally, franchisees must spend at least $7,500 on local advertising and promotional activities in the territory 60 days prior to and within the first 30 days after opening to promote the opening of their Baya Bar franchise.