What can Care Plus Medical Ucc use the Marketing Fund for?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Use.
Care Plus Medical UCC shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead.
The foregoing includes such activities and expenses as Care Plus Medical UCC reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of Care Plus Medical UCC's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
- (c) Discretion.
Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee.
The Marketing Fund will be spent at Care Plus Medical UCC's sole discretion, and Care Plus Medical UCC has no fiduciary duty with regard to the Marketing Fund.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Marketing Fund is used for marketing, advertising, and public relations on local, regional, national, and international levels. This includes materials, programs, and campaigns, as well as related overhead expenses.
Specifically, Care Plus Medical Ucc details that the Marketing Fund can cover the development and placement of advertising and promotions, sponsorships, contests and sweepstakes, and the development of décor, trade dress, Marks, and branding. It also includes the development and maintenance of brand websites, social media, internet activities, e-commerce programs, and search engine optimization. The fund may also be used for market research, public relations, media or agency costs, trade shows and other events, printing and mailing, and administrative and overhead expenses related to the Marketing Fund, including employee compensation and accounting/legal fees.
Care Plus Medical Ucc retains sole discretion over how the Marketing Fund is spent, and franchisees are not guaranteed a direct or proportionate benefit from their contributions. The document also states that Care Plus Medical Ucc has no fiduciary duty regarding the Marketing Fund. This means that while franchisees are required to contribute to the fund (1% of gross sales), Care Plus Medical Ucc has wide latitude in determining how those funds are used, which may or may not directly benefit individual franchisees.