Does Dryer Vent Squad require franchisees to engage in local marketing?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
mber for review. We reserve the right to form, change, dissolve, or merge any advertising cooperative. If we elect to form a local or regional cooperative or if a cooperative already exists as to the area of your Dryer Vent Squad Business, you will be required to participate in the cooperative in accordance with the provisions of our operations manual which we may supplement and modify from time to time. (Franchise Agreement, Article 9.C.).
As of December 31, 2021, we have not established any local or regional advertising cooperatives but reserve the right to do so in the future; and
- Advertising Council – We have not established an advertising council but reserve the right to do so in the future. (Franchise Agreement, Article 9.A.).
Computer System
You are required to operate and maintain at least one laptop computer to be used from your administrative office that must possess broadband internet access, and a tablet computer with cellular broadband wireless internet access for each service vehicle that you operate. You must use the Business Management System that we designate. At all times, we will possess direct access to the Business Management System used by you and we will have access to all information entered into these systems, including information about your sales and customers. Presently, the Business Management System that you will be required to use and access is a version of Vonigo. The cost of the computer system that you will be required to purchase varies depending on your number of service vehicles with your estimated costs for a computer system being $150 to $500. You are obligated to install the software upgrades and patches as provided by the manufacturer of the computer and the Business Management System. You are responsible for hardware repairs or replacement of systems that are no longer covered under warranty.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 30–36)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, franchisees may be required to participate in local or regional advertising cooperatives if Dryer Vent Squad elects to form one in their area. If a cooperative is established, franchisees must contribute to it in amounts and frequencies determined by the cooperative members. These members manage the cooperative, deciding on contributions, marketing expenditures, and allocations. Dryer Vent Squad retains the right to mandate that cooperative decisions require approval by a simple majority of franchisee members, with each Dryer Vent Squad Business having one vote, and a quorum of at least 25% of the designated franchisee cooperative members. Cooperatives with more than nine members may be required to establish formal governing documents and must prepare annual unaudited financial statements for review by all members. Dryer Vent Squad reserves the right to form, change, dissolve, or merge any advertising cooperative. As of December 31, 2021, no local or regional advertising cooperatives had been established.
Dryer Vent Squad also maintains control over marketing standards and the marketing media franchisees can use. Franchisees can request approval for their marketing media, but Dryer Vent Squad has full discretion over the standards and media used for promoting the Dryer Vent Squad Business. Franchisees are also required to use digital media and websites in a manner strictly controlled by Dryer Vent Squad, including assigning all website and digital media accounts to the company.
Additionally, franchisees may be required to contribute a monthly sum not to exceed 2% of monthly Gross Sales to a Brand Development Fund, although Dryer Vent Squad has not established and does not currently require any contribution to a Brand Development Fund. This fund can be used for various marketing and advertising activities at the discretion of Dryer Vent Squad, but it will not be used to directly promote an individual Dryer Vent Squad Business or its marketing area. The Brand Development Fund will maintain unaudited financial records detailing its expenditures, available to franchisees no more than once in any 12-month period.