Under what authority does Deck Medic have the right to reject franchisee advertising?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
g in relation to the sale of Deck Medic Business franchises; and
- (5) Franchisee grants to Franchisor the right to use of Franchisee's financial data and information related to the financial performance of the Franchised Business for reporting purposes within Franchisor's publicly issued and published Franchise Disclosure Document, including in relation to the sale of franchises.
9.C. ADVERTISING COOPERATIVE
At all times Franchisor, in Franchisor's Reasonable Business Judgment, possesses the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Deck Medic Business franchises
are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Deck Medic Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:
- (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Deck Medic Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
- (2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Deck Medic Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
- (3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
- (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Deck Medic Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic maintains authority over advertising through several mechanisms. First, if a franchisee's Deck Medic Business is within a designated Advertising Cooperative, the cooperative administers marketing programs and media development, but all are subject to Deck Medic's review and approval. This ensures that local advertising efforts align with the brand's overall strategy and standards.
Second, Deck Medic retains broad discretion over the National Advertising Fund. Deck Medic may use the fund to promote or benefit any type of Deck Medic Businesses, including those in a particular region. Franchisees cannot reduce or eliminate their contributions to the National Advertising Fund even if they don't directly benefit from its expenditures. This provision underscores Deck Medic's control over national advertising strategies and spending.
Finally, upon termination of the franchise agreement, franchisees must cease using all advertising and marketing materials associated with Deck Medic. This includes proprietary methods, procedures, product descriptions, techniques, trade secrets, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other things associated with Deck Medic. This restriction ensures that former franchisees do not continue to benefit from or potentially misuse Deck Medic's brand and marketing assets after the agreement ends.