What will Crab N Spice use the Marketing Fund for?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
umber. (Section 5.5)
Advertising
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.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, the Marketing Fund will be used for marketing and related purposes and costs. The media coverage is primarily local, and Crab N Spice uses outside vendors and consultants to produce advertising. Crab N Spice will also maintain the brand website, which will be paid for by the Marketing Fund.
It's important to note that Crab N Spice is not required to spend any specific amount on advertising in the area or territory where any particular franchisee is located. Additionally, outlets that Crab N Spice owns are not obligated to contribute to the Marketing Fund, but franchisees must contribute 1% of gross sales per week.
As a new franchisor, Crab N Spice did not spend any money from the Marketing Fund in its most recently concluded fiscal year. If less than all marketing funds are spent in the fiscal year in which they accrue, the money will remain in the Marketing Fund to be spent in the next year. No money from the Marketing Fund is spent principally to solicit new franchise sales.