What is the geographic limit for local marketing expenditures for a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
accordance with such plan. Beginning in the second year and continuing every year thereafter, you shall spend 5% of your annual Gross Sales based on the preceding year on local marketing of your Deck Medic Business and in accordance with our standards and specifications.
Note 6: Local and Regional Advertising Cooperatives – If two or more Deck Medic Businesses are operating within a geographic area, region, or market designated by us (a "designated market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the designated market. If an advertising cooperative is established within a designated market that includes your Deck Medic Business(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Deck Medic Business franchisee will have one vote for each Deck Medic Business located within the cooperative market and those cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members.
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, franchisees are required to spend 5% of the previous year's gross sales on local marketing. These marketing efforts must target customers within the franchisee's Operating Territory. The local marketing initiatives must also adhere to Deck Medic's standards and specifications. Deck Medic will review and approve these local marketing programs.
This means that a Deck Medic franchisee's local marketing budget is directly tied to their sales performance. The funds must be spent within the defined Operating Territory, ensuring that marketing efforts are focused on the area the franchise is meant to serve. The requirement for franchisor approval gives Deck Medic control over brand consistency and marketing effectiveness.
Deck Medic also has the exclusive right to establish local or regional advertising cooperatives. If Deck Medic establishes a cooperative within a market that includes a franchisee's Deck Medic Business, the franchisee must contribute to the cooperative as determined by the cooperative. Franchisees will not be required to contribute more than 5% of monthly Gross Sales to a local or regional advertising cooperative.