What kind of advertising and promotional materials might Crawl Space Ninja provide to franchisees?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
iers from whom you must purchase local marketing services and/or materials.
You may develop advertising materials for your own use at your own cost, provided they meet the specifications designated in our Brand Guide, and you may use marketing materials that we may offer to you from time to time. You may not use any advertising or marketing materials, including press releases, unless they have been approved in advance in writing by us, which approval may be withheld in our discretion. We must approve any non-designated and otherwise unapproved suppliers of marketing services. We will respond to your request for approval within ten (10) business days; however, if we do not respond within ten (10) business days, the proposed advertising or marketing material is deemed disapproved.
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. You must list the Franchised Business in local business directories, including, but not limited to, listings on Internet search engines. If feasible, you may do cooperative advertising with other Crawl Space Ninja franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval.
Brand Development Fund (Franchise Agreement, Section 13.3)
You are required to contribute to the Brand Fund one percent (1%) of weekly Gross Revenue. We may increase your required Brand Fund contribution to up to two percent (2%) of Gross Revenue upon notice to you. Each Crawl Space Ninja outlet operated by our affiliate or us may, but is not required to, contribute to the Brand Fund on the same basis as all other franchisees.
Our accounting and marketing personnel administer the Brand Fund. We may use Brand Fund contributions to pay any and all costs for the development, production and placement of advertising, marketing, promotional and public relations materials and programs. We may also use Brand Fund contributions to pay any and all costs of marketing seminars and training programs, market research, services of advertising and/or public relations agencies, and website development and maintenance. We may further use Brand Fund contributions to pay our costs (including salaries of our staff engaged in consumer marketing and other administrative costs) for advertising that is administered by us or prepared by us, as well as for administration and direction of the Brand Fund.
The Brand Fund will not be used to defray any of our other general operating expenses. Brand Fund contributions will not be used to solicit new franchise sales; provided however, we reserve the right to include "Franchises Available" or similar language and contact information in advertising produced with Brand Fund contributions.
The Brand Fund collects and expends the Brand Fund contributions for the benefit of the System as a whole. We reserve the right to use the Brand Fund contributions to place advertising in national, regional or local media (including broadcast, print, or other media) and to conduct marketing campaigns through any channel, in our discretion, including but not limited to, Internet and direct-mail campaigns. We have no obligation, however, to place advertising or conduct marketing campaigns in any particular area, including the Territory where your Franchised Business is located. The Brand Fund and its earnings shall not otherwise inure to our benefit except that any resulting technology and intellectual property shall be deemed our property.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–31)
What This Means (2024 FDD)
According to Crawl Space Ninja's 2024 Franchise Disclosure Document, franchisees may create their own advertising materials, provided they adhere to the specifications outlined in the Brand Guide. Additionally, Crawl Space Ninja may offer marketing materials for franchisees' use periodically. However, all advertising and marketing materials, including press releases, require prior written approval from Crawl Space Ninja, which can be withheld at their discretion. Approval is also needed for any non-designated suppliers of marketing services. Crawl Space Ninja will respond to approval requests within ten business days; failure to respond within this timeframe implies disapproval.
Crawl Space Ninja does not handle local advertising placement for franchisees and has no obligation to allocate funds for advertising in their specific area or territory. Franchisees are responsible for their own local advertising efforts, including listing the business in local directories and on Internet search engines. Cooperative advertising with other Crawl Space Ninja franchisees in the area is permitted, but requires prior written approval. Franchisees also need written approval to maintain any business profile on social media platforms like Facebook, Twitter, LinkedIn, and YouTube.
Franchisees are required to contribute one percent (1%) of their weekly Gross Revenue to the Brand Fund, which may be increased to up to two percent (2%) of Gross Revenue with notice. Crawl Space Ninja outlets operated by affiliates or the franchisor may contribute to the Brand Fund on the same basis, but are not required to do so. During the fiscal year ended December 31, 2023, the Brand Fund collected $134,829, with expenditures allocated as follows: 85.1% on administration, 11.0% on advertising and marketing, and 3.8% on website updates/redesign. Crawl Space Ninja may establish regional advertising funds or cooperatives in the future, which franchisees may be required to participate in. The fee for regional advertising can range from half to the full amount of the local marketing requirement.