What is the purpose of the National Marketing Fee for Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
10.01 National Marketing Fee. We may, in our sole discretion, charge a National Marketing Fee in consideration for the advertising and marketing services we provide, which may include the creation and production of marketing materials and preparation of advertising campaigns. You must contribute to the National Marketing Fee amounts that we establish at any time and from time to time, not to exceed three percent (3%) of Gross Sales, which are payable monthly together with the royalty fees due hereunder. At this time, the current National Marketing Fee is two percent (2%) of Gross Sales and is collected monthly with the royalty fee.
National marketing may be operated through a separate Entity as we deem appropriate in our sole discretion. Any such Entity will have all of the rights and duties as specified in this Section. We will direct all programs related to national marketing, including, without limitation, the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. Your National Marketing Fee may pay for preparing and producing video, audio, and written materials and electronic media; developing, implementing, and maintaining an electronic commerce website and/or related strategies; administering regional and multi-regional marketing and advertising programs, including, without limitation, purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; and supporting public relations, market research, and other advertising, promotion, and marketing activities.
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 the 2024 Crisp & Green Franchise Disclosure Document, the National Marketing Fee is charged for advertising and marketing services that Crisp & Green provides. These services may include creating marketing materials and preparing advertising campaigns. The National Marketing Fee cannot exceed three percent of gross sales and is payable monthly along with royalty fees. Currently, the National Marketing Fee is two percent of gross sales, collected monthly with the royalty fee.
Crisp & Green has the discretion to operate national marketing through a separate entity. They direct all programs related to national marketing, including creative concepts, materials, endorsements, and their placement. The National Marketing Fee may cover preparing video, audio, and written materials, developing an e-commerce website, administering regional marketing programs, purchasing media advertising, using advertising agencies, supporting public relations, and conducting market research.
It is important to note that Crisp & Green does not guarantee that any particular restaurant will directly benefit from the advertising. They may also furnish franchisees with marketing materials and charge for administrative, shipping, handling, and storage costs. These costs can vary based on individual restaurants and their merchandising capacity.
Crisp & Green retains the right to defer or reduce contributions from a restaurant, or even reduce or suspend the National Marketing Fee and operations, with thirty days' prior written notice. They can also terminate and reinstate the national marketing program.