What costs are included in the administration of the advertising fund for Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
COST CUTTERS will have the right to use the advertising fund monies to purchase and pay for any services or products relating to advertising for Cost Cutters businesses, including the purchase of production materials, ad slicks, brochures, radio and television commercials, services provided by advertising agencies, market research and development costs, advertising and promotion development and production (including all costs relating to media costs for television, radio, newspaper, direct mail and point-of-purchase advertising, and all costs of collateral materials required for such advertising), creative costs, product research costs, internet website costs, all costs and expenses incurred in administering the advertising fund (including, but not limited to, salaries, travel expenses, office supplies, and related general and administrative expenses), and all other costs relating to the advertising and promotion of Cost Cutters businesses.
Source: Item 23 — RECEIPT (FDD pages 76–439)
What This Means (2024 FDD)
According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, the advertising fund, which is administered and controlled by Cost Cutters Family Hair Salon, can be used to cover a variety of advertising-related expenses. These include the purchase of production materials, ad slicks, brochures, radio and television commercials, and services provided by advertising agencies.
Additionally, the fund can be used for market research and development costs, advertising and promotion development and production (including media costs for television, radio, newspaper, direct mail, and point-of-purchase advertising), creative costs, product research costs, and internet website costs.
Importantly, the advertising fund can also cover all costs and expenses incurred in administering the fund itself. These administrative costs specifically include salaries, travel expenses, office supplies, and related general and administrative expenses. The funds can also be used for all other costs relating to the advertising and promotion of Cost Cutters Family Hair Salon businesses.