What is the definition of the 'National Advertising Fund' for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
(Franchise Agreement, Article 9.F.);
-
- National Advertising Fund We may control and administer a national advertising fund (the "National Advertising Fund") (Franchise Agreement, Article 9.A.). As disclosed in Item 6 of this Disclosure Document, you must contribute a monthly sum not to exceed 2% of monthly Gross Sales to the National Advertising Fund. We may use the National Advertising Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System. Our company and/or affiliate owned Deck Medic Businesses may but are not required to contribute to the National Advertising Fund. The National Advertising Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12-month period) an unaudited accounting of how the monies contributed to the National Advertising Fund were spent each year. We are not required to segregate the National Advertising Fund from our general operating funds and we are not a fiduciary or trustee of the National Advertising Fund. The National Advertising Fund will not be used to directly promote your Deck Medic Business or the marketing area in which your Deck Medic Business will be located. (Franchise Agreement, Article 9.A.). We may utilize the National Advertising Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Deck Medic Businesses and the marketing of Deck Medic Businesses. These technology developments and/or improvements may relate, among other things, to our website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Deck Medic Businesses. You may or may not benefit from these technology developments and improvements. (Franchise Agreement, Article 9.A.).
We may use the National Advertising Fund to compensate ourselves for administrative fees associated with managing the National Advertising Fund and for our internal employee salaries, expenses and overhead associated with or reasonably allocated to managing the activities of the National Advertising Fund and performing services on behalf of the National Advertising Fund including, but not limited to, directing, developing and managing media of the National Advertising Fund. We will not use the National Advertising Fund to directly market the sale of Deck Medic Business franchises; however, the advertising, marketing and brand development materials developed, including the System website, may contain information as to the availability of Deck Medic Business franchises for sale and contact information for franchise inquiries. As of December 31, 2023, we have collected $20,592.19 towards the National Advertising Fund. Of the $20,592.19 collected, we spent 17,587.93 (85)% towards the website and social media placement and rolled the re
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–29)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the National Advertising Fund is a fund that Deck Medic may control and administer for system-wide marketing. Franchisees are required to contribute a monthly sum not to exceed 2% of monthly Gross Sales to the National Advertising Fund, as disclosed in Item 6.
Deck Medic may use the National Advertising Fund for various purposes, including market studies, research, service and product development, testing, advertising and public relations services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, and administrative costs. These administrative costs may include reimbursement for direct administrative and personnel costs associated with advertising and public relations. The fund can also be used for purchasing media placement, advertising time, and public relations materials in national, regional, or other advertising and public relations media.
The National Advertising Fund will maintain unaudited financial records detailing its expenditures and will make available to franchisees (no more frequently than once in any 12-month period) an unaudited accounting of how the monies contributed to the National Advertising Fund were spent each year. Deck Medic is not required to segregate the National Advertising Fund from its general operating funds and is not a fiduciary or trustee of the National Advertising Fund. The National Advertising Fund will not be used to directly promote a franchisee's Deck Medic Business or the marketing area in which their Deck Medic Business is located. Deck Medic may use the National Advertising Fund to compensate themselves for administrative fees associated with managing the National Advertising Fund and for their internal employee salaries, expenses and overhead associated with or reasonably allocated to managing the activities of the National Advertising Fund and performing services on behalf of the National Advertising Fund including, but not limited to, directing, developing and managing media of the National Advertising Fund.
As of December 31, 2023, Deck Medic had collected $20,592.19 towards the National Advertising Fund, spending $17,587.93 (85%) towards the website and social media placement and rolling the remaining $3,004.26 (15%) into the National Advertising Fund for 2024. Deck Medic and/or affiliate owned Deck Medic Businesses may, but are not required to, contribute to the National Advertising Fund.