Are Deck Medic businesses owned by the Franchisor's affiliates required to contribute to the Advertising Cooperative?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (8) Deck Medic Businesses owned by Franchisor and/or Franchisor's affiliates that are located within the geographic area of the designated Advertising Cooperative are not required to make contributions to the Advertising Cooperative; and
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic businesses owned by the franchisor or its affiliates and located within the geographic area of a designated Advertising Cooperative are not required to contribute to that Advertising Cooperative. This exemption from contributing to the Advertising Cooperative applies only to businesses owned by the franchisor or its affiliates.
This means that while franchisees operating within a cooperative's area must participate and contribute financially, Deck Medic-owned locations in the same area do not have the same obligation. This could potentially create an uneven playing field, where franchisees are funding local advertising efforts that may also benefit company-owned stores without those stores sharing the cost.
A prospective franchisee should consider the implications of this policy. It would be prudent to inquire about the number and location of company-owned stores within existing or planned Advertising Cooperative areas. Understanding the extent of company-owned participation, or lack thereof, in these cooperatives is essential for assessing the financial burden and fairness of the advertising contribution requirements for franchisees.