factual

Can Deck Medic use the National Advertising Fund for technology development and testing?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

exceed 2% of monthly Gross Sales to the National Advertising Fund. We may use the National Advertising Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System. Our company and/or affiliate owned Deck Medic Businesses may but are not required to contribute to the National Advertising Fund. The National Advertising Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12-month period) an unaudited accounting of how the monies contributed to the National Advertising Fund were spent each year. We are not required to segregate the National Advertising Fund from our general operating funds and we are not a fiduciary or trustee of the National Advertising Fund.

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 can be used for technology development and testing. Franchisees contribute up to 2% of their monthly Gross Sales to this fund. Deck Medic has the discretion to use the fund for various purposes, including market studies, research, service and product development, testing, technology development, and advertising.

Deck Medic may use the National Advertising Fund to develop and test technologies that could improve the operations and marketing of Deck Medic businesses. These developments may relate to the company website and other web offerings. However, the FDD states that franchisees may or may not directly benefit from these technology developments and improvements.

As of December 31, 2023, Deck Medic had collected $20,592.19 for the National Advertising Fund, spending $17,587.93 (85%) on the website and social media placement and rolling the remaining $3,004.26 (15%) into the National Advertising Fund for 2024. Deck Medic can also use the fund to cover administrative fees and internal employee salaries related to managing the fund's activities. The fund will not be used to directly promote an individual Deck Medic franchise or its marketing area.

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.