Can Devon Creek collect a Devon Creek franchisee's local advertising expenditure and implement advertising on their behalf?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
ment, Sections 13.2, 13.5 and 13.6)
You are required to spend of $1,000 per month on local advertising to promote your Franchised Business until you reach $250k in annual revenue, thereafter you are required to spend the greater of three percent (3%) of monthly Gross Revenue generated by the Franchised Business or $1,000 per month on Local Advertising. We may increase your minimum local advertising expenditure, in our reasonable discretion. Upon our request, you must furnish us with a quarterly report and documentation of local advertising expenditures during the previous calendar quarter. We reserve
the right to collect some or all of your Local Advertising expenditure and implement Local Advertising on your behalf.
You may develop advertising materials for your own use at your own cost, and you may use marketing materials that we may offer to you from time to time. You may not use any advertising or marketing materials, including press releases, unless they have been approved in advance in writing by us, which approval may be withheld in our discretion. We will respond to your request for approval within fifteen (15) business days; however, if we do not respond within fifteen (15) business days, the proposed advertising or marketing material is deemed "disapproved".
We will set up and monitor online advertising on your behalf as part of our Brand Fund service. You must list the Franchised Business in local business directories, including, but not limited to, listings on Internet search engines. If feasible, you may do cooperative advertising with other Devon Creek franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, LinkedIn, YouTube, or any other social media and/or networking site without our prior written approval.
We require you to spend between $3,000 and $18,000 in opening advertising and promotional activities, at the time and in the manner we specify, in the Territory. We reserve the right to collect some or all of your grand opening funds expenditure and implement grand opening campaign activities on your behalf.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–32)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, Devon Creek retains the right to collect a franchisee's local advertising expenditure and use it to implement local advertising on the franchisee's behalf. Devon Creek franchisees are obligated to spend $1,000 per month on local advertising until their annual revenue reaches $250,000. After that, they must spend the greater of 3% of monthly gross revenue or $1,000 per month on local advertising. Devon Creek may increase the minimum local advertising expenditure at its discretion.
Franchisees must provide Devon Creek with quarterly reports and documentation of their local advertising expenditures. Franchisees can develop their own advertising materials at their own cost, and they can use marketing materials offered by Devon Creek. However, all advertising and marketing materials, including press releases, must be approved in writing by Devon Creek, and Devon Creek will respond to approval requests within 15 business days.
Devon Creek will set up and monitor online advertising as part of its Brand Fund service. Franchisees must list their business in local business directories and may do cooperative advertising with other Devon Creek franchisees with prior written approval. Franchisees are also required to spend between $3,000 and $18,000 on opening advertising and promotional activities, as specified by Devon Creek. Devon Creek also reserves the right to collect grand opening funds and implement grand opening campaign activities on the franchisee's behalf.