What are the components of the System-wide marketing funds that Dryer Vent Squad may administer?

According to the 2024 Dryer Vent Squad FDD, the System-wide marketing funds that Dryer Vent Squad may administer are comprised of a Brand Development Fund and/or Advertising Cooperative. The Brand Development Fund may be used for various marketing and development activities, such as market studies, research, service and product development, testing, advertising and public relations. It also covers the creation and printing of marketing materials, advertising copy, commercials, tracking costs, agency fees, and administrative expenses, including personnel costs related to advertising and public relations. The fund can also be used for purchasing media placement, advertising time, and public relations materials at the discretion of Dryer Vent Squad.

The Brand Development Fund is supported by franchisee contributions, which can be up to 2% of monthly Gross Sales. Dryer Vent Squad and its affiliated businesses may also contribute to the fund, but are not required to do so. While the fund's financial records are available for franchisee review (no more than once per 12-month period), Dryer Vent Squad is not obligated to segregate the fund from its general operating funds and does not act as a fiduciary or trustee of the fund. The Brand Development Fund will not be used to directly promote an individual Dryer Vent Squad Business or its specific marketing area.

In addition to the Brand Development Fund, Dryer Vent Squad may establish local or regional advertising cooperatives. If a cooperative is established in a franchisee's market, participation is mandatory, with contribution amounts and frequency determined by the cooperative members. These cooperatives are administered by their members, who decide on marketing expenditures and allocations. Dryer Vent Squad retains the right to set the geographic boundaries of each cooperative. While Dryer Vent Squad has not established an advertising council as of December 31, 2021, it reserves the right to do so in the future.