When is the National Advertising Fund Fee due for Deck Medic franchisees?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (1) If Franchisor institutes the National Advertising Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the National Advertising Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) for each monthly Accounting Period (the "National Advertising Fund Fee"), provided, however, Franchisee will not be required to contribute more than 5% of the Gross Sales of the Franchised Business for each monthly Accounting Period;
- (2) Franchisor will provide Franchisee with written notice of the percentage of Gross Sales that Franchisee is required to contribute to the National Advertising Fund. Upon such written notice to Franchisee, the percentage of Gross Sales to be paid by Franchisee to the National Advertising Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing. The National Advertising Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees or as otherwise designated by Franchisor;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the National Advertising Fund Fee is due on the Due Date for each monthly Accounting Period. The fee is a percentage of Gross Sales, determined and designated by Deck Medic, but will not exceed 5% of Gross Sales for each monthly Accounting Period. Deck Medic will provide written notice of the specific percentage required for contribution to the National Advertising Fund, and this percentage will remain applicable for each monthly Accounting Period until otherwise designated in writing by Deck Medic.
The National Advertising Fund Fee is paid to Deck Medic in accordance with the payment terms and method set forth in Article 5.B for the payment of Royalty Fees or as otherwise designated by Deck Medic. This means that the payment terms for the National Advertising Fund Fee are the same as those for Royalty Fees, unless Deck Medic specifies otherwise.
Prospective franchisees should note that Deck Medic has the discretion to change the percentage of Gross Sales required for the National Advertising Fund Fee with written notice. Franchisees should clarify with Deck Medic what the typical payment terms and methods are for Royalty Fees to fully understand when and how the National Advertising Fund Fee is due.