What sections of the Devon Creek Franchise Agreement relate to local advertising?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
ise Agreement, Section 13.6); and
4. Advertising
Local Advertising (Franchise Agreement, 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
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, several sections of the Franchise Agreement pertain to local advertising. Specifically, Item 11 indicates that Sections 13.2, 13.5, and 13.6 of the Franchise Agreement cover local advertising. These sections likely detail the franchisee's obligations and the franchisor's rights regarding local advertising efforts.
The FDD also states that franchisees are required to spend $1,000 per month on local advertising until they reach $250,000 in annual revenue. After that, they must spend the greater of 3% of monthly Gross Revenue or $1,000 per month on local advertising. Devon Creek has the right to increase the minimum local advertising expenditure at their discretion. Franchisees must also provide quarterly reports and documentation of their local advertising expenditures upon request. Devon Creek also reserves the right to collect some or all of a franchisee's local advertising expenditure and implement local advertising on their behalf.
Furthermore, franchisees may develop their own advertising materials at their own cost, or use marketing materials offered by Devon Creek. However, all advertising and marketing materials, including press releases, must be approved in writing by Devon Creek in advance. Devon Creek will respond to requests for approval within 15 business days; otherwise, the material is deemed disapproved. Devon Creek will also set up and monitor online advertising as part of their Brand Fund service, and franchisees must list their business in local business directories and on Internet search engines. Franchisees may also engage in cooperative advertising with other Devon Creek franchisees with prior written approval. Franchisees are prohibited from maintaining any business profile on social media without prior written approval from Devon Creek.
Devon Creek also requires franchisees to spend between $3,000 and $18,000 on opening advertising and promotional activities, at the time and in the manner specified by Devon Creek. Devon Creek reserves the right to collect some or all of these grand opening funds and implement grand opening campaign activities on the franchisee's behalf. These stipulations ensure that Devon Creek maintains control over brand messaging and consistency, while also requiring franchisees to invest in local marketing efforts.