How often must a Devon Creek franchisee furnish a report on local advertising expenditures?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
sup> Local Advertising. You must spend a minimum of One Thousand Dollars ($1,000) per month until such time as Franchisee has obtained $250,000 in Gross Revenue thereafter a minimum of the greater of 3% of Gross Revenue or $1,000 per month. Upon written approval from and in the sole discretion of Franchisor the first year local advertising and marketing requirements may be reduced. Upon our request, you must furnish us with a quarterly report and documentation of local advertising expenditures during the
Source: Item 6 — OTHER FEES (FDD pages 8–16)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, franchisees are required to submit a report on local advertising expenditures on a quarterly basis. Specifically, upon Devon Creek's request, a franchisee must furnish a report along with documentation of local advertising expenditures incurred during the previous calendar quarter.
This means that Devon Creek franchisees must keep detailed records of their local advertising spending to provide this documentation. The amount a franchisee is required to spend on local advertising is a minimum of $1,000 per month until the franchisee obtains $250,000 in Gross Revenue. After that, the minimum is the greater of 3% of Gross Revenue or $1,000 per month.
Franchisees should be aware that these reports are in addition to other financial obligations, such as the Brand Fund Contribution, which is 1.5% of weekly Gross Revenue. Devon Creek also retains the right to increase the Brand Fund Contribution to 3% of weekly Gross Revenue. Therefore, accurate record-keeping and timely reporting are essential for Devon Creek franchisees to remain compliant with the franchise agreement.