Is the National Advertising Fund Fee a monthly or annual fee for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Remarks | ||
| (Note 1) | |||
| Royalty (Note 2 and 3) | 6% of Gross Sales | Monthly on the second Wednesday of each month | Will be debited automatically from your bank account by ACH or other means designated by us. |
| National Advertising Fund (Note 4) | Up to 2% of Gross Sales, currently 1% of Gross Sales | Monthly on the second Wednesday of each month | We have established a national advertising fund and the current national advertising fund fee is 1% of Gross Sales. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the National Advertising Fund Fee is a monthly fee. Franchisees must pay this ongoing fee, which can be up to 2% of their monthly Gross Sales. Currently, Deck Medic sets this fee at 1% of monthly Gross Sales.
This means that each month, a Deck Medic franchisee will need to calculate their Gross Sales and remit 1% of that amount to the National Advertising Fund. This fund is used for national advertising and marketing efforts to promote the Deck Medic brand. The fee is collected on the second Wednesday of each month.
It's important to note that while the National Advertising Fund Fee is a fixed percentage of Gross Sales, Deck Medic retains the right to increase it up to 2% in the future. Franchisees should factor this potential increase into their financial projections. Additionally, this fee is separate from the local marketing expenditure requirement, which mandates spending 5% of the previous year's Gross Sales on local advertising starting in the second year of operation.