To whom does the Deck Medic franchisee pay the National Advertising Fund Fee?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
As designated by Franchisor in this Agreement, the Manual or otherwise, Franchisee shall pay the following additional fees to either Franchisor, Franchisor's affiliate(s), or Franchisee's designee(s):
- (1) National Advertising Fund Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, the National Advertising Fund Fee as set forth in Article 9.A. of this Agreement.
- (2) Customer Satisfaction Non-Compliance Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, a Customer Satisfaction Non-Compliance Fee upon demand of Franchisor following the occurrence of a Customer Satisfaction Non-Compliance Event.
- (3) Non-Compliance Fees Franchisee shall pay to Franchisor all Non-Compliance Fees in accordance with the terms of this Agreement including, but not limited to, Payment Non-Compliance Fees, Operations Non-Compliance Fees, and Reporting Non-Compliance Fees.
- (4) Supplemental Training Fees Franchisee shall pay to Franchisor all training fees in accordance with the terms of this Agreement including, but not limited to, Additional Initial Training Fees and Supplemental Training Fees.
- (5) Quality Assurance Audit Fees Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees on-going weekly, monthly, and/or per use fees related to quality assurance programs designated by Franchisor related to periodic inspections of Franchisee's Deck Medic Business and secret shopper evaluations.
- (6) Annual Conference Attendance Fees Franchisee shall be responsible for all expenses of its personnel attending the Annual System Conference including travel, meals and lodging. Franchisee may be required to pay to Franchisor an Annual Conference Attendance Fee. Franchisee agrees that if Franchisee fails to attend the Annual System Conference that Franchisor may, nevertheless, charge and Franchisee shall pay the Annual Conference Attendance Fee – even if Franchisor waives such fee for franchisees who attend the Annual System Conference.
- (7) All Other Fees and Obligations Set Forth in this Agreement Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees such other fees, charges and expenses as set forth in this Agreement and in accordance with the terms of this Agreement or, otherwise, in accordance with the Manuals and/or Franchisor's standards and specifications.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the franchisee is required to pay the National Advertising Fund Fee to either Deck Medic itself, its affiliates, or its designees. This fee is a mandatory, ongoing payment calculated as a percentage of the franchise's gross sales for each monthly accounting period. While the exact percentage is determined by Deck Medic, the franchisee will not be required to contribute more than 5% of gross sales.
Deck Medic will provide written notice to the franchisee specifying the percentage of gross sales required for the National Advertising Fund Fee. This percentage remains applicable for each monthly accounting period throughout the term of the agreement unless otherwise designated in writing by Deck Medic. The National Advertising Fund Fee is due on the same date and paid using the same method as the royalty fees, as outlined in Article 5.B, or as otherwise specified by Deck Medic.
Deck Medic has the discretion to direct all advertising, media placement, marketing, and public relations programs financed by the National Advertising Fund. This includes strategic direction, creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation of the funds. The National Advertising Fund may also be used for evaluating and monitoring business management systems, maintaining and upgrading the system website, and developing digital media.
The purpose of the advertising, media, and marketing activities financed by the National Advertising Fund is to enhance the Deck Medic brand, increase public recognition, and raise awareness of the licensed marks. However, the fund will not be used to directly market or promote an individual franchise or pay for media placements that primarily benefit a franchisee's administrative office or operating territory, unless otherwise directed by Deck Medic.