factual

Will the National Advertising Fund be used to directly promote my individual Deck Medic Business?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

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 will not be used to directly promote an individual Deck Medic business or its specific marketing area. However, Deck Medic may use the fund to develop and test media and technologies that could potentially improve the operations and marketing of Deck Medic businesses, though franchisees may or may not directly benefit from these developments.

Franchisees are required to contribute up to 2% of their monthly Gross Sales to the National Advertising Fund. Deck Medic may use these funds for various purposes, including market studies, research, service and product development, advertising and public relations, and the purchase of media placement. Deck Medic and its affiliates may also contribute to the fund, but are not required to do so.

Deck Medic has the right to form advertising cooperatives. If a cooperative is established in the franchisee's market, the franchisee must contribute to it. However, these contributions cannot exceed 5% of the franchisee's monthly Gross Sales. Franchisees are also responsible for local marketing, and beginning in the second year, they must spend 5% of the previous year's annual Gross Sales on local marketing efforts. All marketing materials must be pre-approved by Deck Medic.

As of December 31, 2023, Deck Medic had collected $20,592.19 for the National Advertising Fund, spending $17,587.93 (85%) on website and social media placement and rolling over the remaining $3,004.26 (15%) into the 2024 fund. While the National Advertising Fund won't directly promote a franchisee's business, it supports broader marketing and technology initiatives that may indirectly benefit all franchisees. Franchisees are also responsible for their own local marketing efforts, subject to Deck Medic's approval.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.