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Do contributions to the Deck Medic Advertising Cooperative count toward the franchisee's minimum local marketing obligations?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;

Source: Item 23 — RECEIPTS (FDD pages 43–228)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, contributions to the Advertising Cooperative can count toward a franchisee's minimum local marketing obligations. Specifically, a franchisee's contributions to the Advertising Cooperative cannot exceed the minimum local marketing obligations outlined in Article 9.B of the Franchise Agreement. Furthermore, these contributions will count toward fulfilling those minimum local marketing obligations. This means that if a Deck Medic franchisee is required to spend a certain amount on local marketing, their contributions to the Advertising Cooperative will be credited towards meeting that requirement.

This arrangement benefits franchisees by allowing them to satisfy their local marketing requirements through a collective advertising effort, potentially achieving greater reach and impact than individual campaigns. It also ensures that franchisees are not double-billed for marketing efforts, as contributions to the cooperative are recognized as fulfilling their local obligations. However, franchisees must participate in and contribute to the Advertising Cooperative if their Deck Medic business or operating territory is located within the geographic area designated for the Advertising Cooperative.

Deck Medic maintains the right to authorize, establish, designate, and de-authorize local or regional advertising cooperatives within designated markets. Franchisees are required to submit statements and reports to both the Advertising Cooperative and Deck Medic, as required by the cooperative and approved by Deck Medic. All marketing materials, plans, or media used by the Advertising Cooperative or its members must receive prior written approval from Deck Medic. This ensures brand consistency and quality control across all marketing efforts.

Deck Medic businesses owned by the franchisor or its affiliates within the Advertising Cooperative's geographic area are not required to contribute to the cooperative. The Advertising Cooperative must also adhere to the rules and regulations established by Deck Medic in the Operations Manual, which may be modified from time to time. This framework ensures that the Advertising Cooperative operates in alignment with Deck Medic's overall marketing strategy and brand standards.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.