Does Crab N Spice have any obligation to conduct advertising beyond maintaining the brand website?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which will be paid for by the Marketing Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, Crab N Spice's only obligation regarding advertising is to maintain the brand website, which is paid for by the Marketing Fund. The FDD states that Crab N Spice has no other obligation to conduct advertising. However, Crab N Spice uses the Marketing Fund for marketing and related costs, and media coverage is primarily local.
While Crab N Spice is not required to spend any amount of advertising in the area or territory where any particular franchisee is located, franchisees are required to contribute 1% of gross sales per week to the Marketing Fund. Franchisees must also spend at least 2% of gross sales each month on marketing their individual business.
Franchisees may use their own advertising or marketing material only with Crab N Spice's approval, which must be submitted at least 14 days prior to use. If Crab N Spice does not respond, the material is deemed rejected. Crab N Spice may use any advertising or marketing materials developed by franchisees for any purpose, without any payment to the franchisee.