factual

What costs and expenditures are *not* included in a Devon Creek franchisee's local advertising expenditures, unless approved in writing by the franchisor?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

The following costs and expenditures incurred by Franchisee shall not be included in Franchisee's expenditures on Local Advertising for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iv) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; (v) charitable, political or other contributions or donations.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

According to Devon Creek's 2024 Franchise Disclosure Document, there are specific costs that franchisees cannot include in their local advertising expenditures unless they receive prior written approval from Devon Creek. These disallowed costs include incentive programs for employees or agents, research expenditures, salaries, and expenses for any personnel attending advertising meetings, workshops, or other marketing activities, as well as charitable, political, or other contributions or donations.

This policy ensures that Devon Creek franchisees focus their advertising spending on activities that directly promote the brand and services in a manner consistent with the franchisor's standards. By requiring approval for these specific types of expenditures, Devon Creek maintains control over how advertising funds are used and prevents franchisees from using advertising budgets for unrelated or unapproved purposes.

For a prospective Devon Creek franchisee, this means carefully tracking local advertising expenditures and ensuring that any costs outside of standard advertising activities are pre-approved by the franchisor. Failure to obtain approval could result in those expenditures not counting towards the franchisee's required local advertising spend, potentially leading to non-compliance with the franchise agreement. Franchisees should maintain clear records of all advertising expenses and approvals to avoid any disputes with Devon Creek.

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.