What is the permitted use of the fees collected by the Dryer Vent Squad Advertising Cooperative?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
ed by the Advertising Cooperative;
- (2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Dryer Vent Squad Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
- (3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
- (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Dryer Vent Squad Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;
- (6) Franchisee shall submit to the Advertising Cooperative and to Franchisor such statements and reports as may be required by the Advertising Cooperative and approved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad FDD, the Advertising Cooperative is exclusively dedicated to administering marketing programs and developing media for its members' local or regional marketing efforts, subject to the franchisor's review and approval. Franchisees are obligated to participate in and contribute to the Advertising Cooperative if their Dryer Vent Squad Business or Operating Territory falls within the cooperative's designated geographic area. These contributions must align with the cooperative's determined amounts and requirements, but they cannot exceed the franchisee's local minimum marketing obligations as outlined in the franchise agreement.
The FDD specifies that all contributions to the Advertising Cooperative must be managed according to the cooperative's governing documents. The Advertising Cooperative is solely responsible for collecting and spending its fees for the purposes defined in Article 9.C of the agreement. This ensures that the funds are used specifically for marketing and advertising initiatives that benefit the cooperative's members.
Dryer Vent Squad retains control over the Advertising Cooperative's marketing materials, plans, and media, requiring prior written approval before use. Additionally, Dryer Vent Squad businesses owned by the franchisor or its affiliates within the Advertising Cooperative's area are not required to contribute to the cooperative. The Advertising Cooperative must also adhere to the rules and regulations established by Dryer Vent Squad in the Operations Manual, which may be updated periodically.