What costs are included in 'General Advertising' for Capriottis Sandwich Shop?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Creative" includes the costs associated with creating, developing, and distributing general advertising, marketing, promotions, public relations, and market research programs and related activities, including costs for preparing television, radio, newspaper, point-of-sale, and other media programs and materials and all related fees and commissions, including fees charged by national spokespersons and commissions charged for creative works. The term "General Advertising" includes all costs associated with placing and purchasing media advertising (e.g., television, print media, and electronic media) and related activities and associated fees and commissions, including commissions charged by media buying companies, in any geographic area in which a Restaurant operates.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 33–42)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, the term "General Advertising" encompasses all expenses related to placing and purchasing media advertising. This includes advertising on television, print media, and electronic media. It also covers related activities, along with associated fees and commissions, specifically commissions charged by media buying companies. This advertising can occur in any geographic area where a Capriottis Sandwich Shop restaurant operates.
In addition to General Advertising, the Marketing Fund also allocates funds to "Creative" costs. These include the costs associated with creating, developing, and distributing general advertising, marketing, promotions, public relations, and market research programs and related activities. This includes costs for preparing television, radio, newspaper, point-of-sale, and other media programs and materials and all related fees and commissions, including fees charged by national spokespersons and commissions charged for creative works.
Prospective franchisees should understand that these advertising costs are funded through contributions to the Marketing Fund, to which franchisees must contribute up to 4% of their Gross Sales, though the current charge is 2%. Failure to make timely payments results in a franchisee not having access to the marketing, advertising, and related programs and materials the Marketing Fund makes available. These Marketing Fund fees are in addition to fees payable for local advertising and fees payable for your Cooperative.