What is included in Local Marketing expenditures for Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
10.02 Local Advertising. You agree to spend on local advertising and promoting the Franchised Restaurant ("Local Marketing") such amounts as we establish at any time and from time to time, not to exceed four and one-half percent (4.5%) of Gross Sales each
quarter. For these purposes, Local Marketing expenditures include: (a) amounts contributed to advertising cooperatives; and (b) amounts spent for advertising media, such as television, radio, newspaper, billboards, posters, direct mail, yellow pages, collateral promotional and novelty items, advertising on public vehicles, such as cabs and buses, and, if not provided by us, the cost of producing approved materials necessary to participate in these media. You must comply with and participate in any Local Marketing requirements, programs, promotions, or events that we may prescribe from time to time. Local Marketing expenditures do not include amounts spent for items which we, in our reasonable judgment, deem inappropriate for meeting the minimum advertising requirement, including permanent on-premises signs and menu boards, lighting, menus, vehicle maintenance (even though such vehicles may display the Marks), premiums, discounts, free offers, and employee incentive programs. Upon our request, you must provide us with itemization and proof that you are conducting local advertising and also provide an accounting of your Local Marketing expenditures. You will have thirty (30) days in which to provide this information to us from the date of our request.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, local marketing expenditures include contributions to advertising cooperatives and amounts spent on various advertising media. These media include television, radio, newspapers, billboards, posters, direct mail, yellow pages, collateral promotional and novelty items, and advertising on public vehicles like cabs and buses. Additionally, the cost of producing approved materials necessary for these media is included, provided Crisp & Green does not supply them.
However, certain expenses are excluded from counting towards the local marketing requirement. These include permanent on-premises signs and menu boards, lighting, menus, vehicle maintenance (even if the vehicles display Crisp & Green's marks), premiums, discounts, free offers, and employee incentive programs.
Crisp & Green franchisees are required to comply with and participate in any local marketing requirements, programs, promotions, or events that the company prescribes. Franchisees must also provide itemization and proof of their local advertising spending upon request, along with an accounting of their local marketing expenditures, within 30 days of the request. If a franchisee spends less than the required amount on local marketing in a given year, they must pay the difference to Crisp & Green. Franchisees are required to spend up to 4.5% of gross sales each quarter on local advertising and promoting the franchised restaurant.