What obligations are included under 'Advertising Contributions' for a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
nd office and/or facility for managing the operations of the Franchised Business and may include facilities for storing inventory and supplies, parking Service Vehicles, and staging on-site customer service visits.
- "Advertising Contributions" refers to and means any and all obligations of Franchisee to contribute to and/or pay fees to Franchisor or Franchisor's affiliate or designees as set forth in this Agreement including, but not limited to, the National Advertising Fund Fees set forth in Article 9.A. of this Agreement and Advertising Cooperative contributions and contributions set forth in Article 9.C. of this Agreement.
- "Advertising Cooperative" shall have the meaning defined and set forth in Article 9.C. of this Agreement.
- "Alternative Channels of Distribution" refers to and means retail and/or wholesale based sales and/or distribution outlets based on the world wide web, print catalogs, and mail order outlets.
- "Ancillary Agreements" refers to and means, individually and collectively, each and every agreement between: (a) Franchisor and Franchisee, but not including this Agreement; (b) Franchisor and each of Franchisee's Owners, whether individually and/or collectively; and (c) Franchisor and each Spouse of Franchisee's Owners, whether individually and/or collectively. Without limitation to the foregoing, the term Ancillary Agreements includes the Franchise Owner and Spouse Agreement and Guaranty and the Assignment of Telephone Numbers and Digital Media Accounts, as said agreements, individually and/or collectively, may have been entered into between the foregoing parties.
- "Annual Conference Attendance Fee" refers to and means an annual conference attendance fee to be paid by Franchisee to Franchisor in an amount determined by Franchisor but not to exceeding $1,000 annually.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, 'Advertising Contributions' encompass all financial obligations a franchisee has to Deck Medic, its affiliates, or designees, as outlined in the franchise agreement. These contributions specifically include the National Advertising Fund Fees, detailed in Article 9.A of the agreement, and any contributions to an Advertising Cooperative, as described in Article 9.C.
If a Deck Medic franchisee's business or operating territory falls within the area of a designated Advertising Cooperative, they are obligated to participate in and contribute financially to that cooperative. The amount of these contributions is determined by the Advertising Cooperative itself. However, the franchisee's contribution to the Advertising Cooperative will count towards fulfilling their minimum local marketing obligations, as specified in Article 9.B of the franchise agreement.
Franchisees must also provide statements and reports to both the Advertising Cooperative and Deck Medic as required. All funds contributed to the Advertising Cooperative must be managed according to the cooperative's governing documents, and the cooperative's sole purpose is to collect and spend fees for advertising purposes, as defined in Article 9.C. It's important to note that neither the Advertising Cooperative nor its members can use any marketing materials, plans, or media without obtaining prior written approval from Deck Medic.