Is Deck Medic obligated to ensure that National Advertising Fund expenditures in any geographic area are proportionate to contributions from Deck Medic businesses in that area?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (9) Although Franchisor will endeavor to utilize the National Advertising Fund to develop advertising and marketing materials and programs, Franchisor undertakes no obligation to ensure that expenditures by the National Advertising Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the National Advertising Fund by Deck Medic Businesses operating in that geographic area or that any Deck Medic Businesses will benefit directly or in proportion to its contribution to the National Advertising Fund from the development of advertising and marketing materials. Franchisor may use the National Advertising Fund to promote or benefit any type of Deck Medic Businesses in the System. Franchisor may use the National Advertising Fund to promote or benefit Deck Medic Businesses located within a particular region of the United States. Franchisee agrees that Franchisee's failure to derive any such benefit will not serve as a basis for a reduction or elimination of its obligation to contribute to the National Advertising Fund. Franchisee agrees that the failure (whether with or without Franchisor's permission) of any other franchisee to make the appropriate amount of contributions to the National Advertising Fund shall not in any way release Franchisee from or reduce Franchisee's obligations under this Article 9, such obligations being separate and independent obligations of Franchisee under this Agreement. Except as expressly provided in this Article 9, Franchisor assumes no direct or indirect liability, responsibility, or obligation to Franchisee with respect to the maintenance, direction, and/or administration of the National Advertising Fund; and
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic is not obligated to ensure that National Advertising Fund expenditures in any geographic area are proportionate to the contributions from Deck Medic businesses operating in that area. Deck Medic retains the discretion to allocate these funds as it sees fit.
Specifically, Deck Medic is not obligated to ensure that advertising and marketing expenditures in a specific geographic area are proportionate or equivalent to the contributions from Deck Medic businesses in that area. Furthermore, Deck Medic does not guarantee that any Deck Medic business will directly benefit from the advertising and marketing materials in proportion to its contribution to the National Advertising Fund. Deck Medic can use the National Advertising Fund to promote any type of Deck Medic business within the system or those located in a particular region of the United States.
This means that a Deck Medic franchisee may contribute to the National Advertising Fund without seeing a direct or proportional benefit in their specific area. The franchisee's obligation to contribute to the fund remains, regardless of whether they perceive a direct benefit. Deck Medic also has the right to establish a council to advise on the fund's administration and marketing matters; however, this council serves only in an advisory capacity, and Deck Medic ultimately makes the final decisions.