Does the Crisp & Green FDD guarantee any direct benefit from national advertising for a particular restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
We cannot assure you that any particular Restaurant will benefit directly or pro-rata from the placement of advertising. The advertising and marketing services we provide may include preparing and producing materials and campaigns we select, including video, audio and written advertising and point-of-purchase ("POP") materials, employing advertising agencies and inhouse staff, and engaging in market research activities. We may furnish you with marketing, advertising and promotional materials (including POP materials), and we may charge you related administrative, shipping, handling and storage charges. These costs may vary based on individual Restaurants and their merchandising capacity.
We may at any time defer or reduce contributions of a Restaurant and, upon thirty (30) days' prior written notice to you, reduce or suspend the National Marketing Fee and operations for one or more periods of any length and terminate (and, if terminated, reinstate) the national marketing program.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, there is no assurance that a specific restaurant will directly benefit from national advertising efforts. While franchisees are required to contribute to a National Marketing Fee, currently set at two percent (2%) of Gross Sales, these funds are used at Crisp & Green's discretion for various marketing activities. These activities include creating marketing materials, running advertising campaigns, maintaining an e-commerce website, and supporting public relations.
Crisp & Green directs all aspects of national marketing programs, including the creative content, materials, and where the advertising is placed geographically, in the market, and in the media. The National Marketing Fee can be used for video, audio, written materials, electronic media, e-commerce, regional marketing, direct mail, advertising agencies, market research, and public relations.
It is important to note that Crisp & Green retains the right to modify or even suspend the National Marketing Fee. They can defer or reduce contributions for a restaurant or suspend the entire national marketing program with thirty days' written notice. This flexibility allows Crisp & Green to adjust their marketing strategy as needed, but it also means that franchisees may not always see a direct or immediate return on their marketing fee contributions.