factual

What are the requirements for advertising and promotion of the Dryer Vent Squad franchised business?

Dryer_Vent_Squad Franchise · 2024 FDD

Answer from 2024 FDD Document

ther metrics and financial information as designated by Franchisor;

  • (2) Prior to opening the Franchised Business, Franchisee shall pay to Franchisor a start-up marketing fee of $5,500 (the "Start-Up Marketing Fee"). The Start-Up Marketing Fee is for services to be determined and designated by Franchisor for initial marketing of the Franchised Business. This is only an initial start-up marketing fee;

  • (3) At all times, Franchisee's marketing efforts and the distribution of each marketing channel and media engaged by Franchisee must be directly targeted to Franchisee's Operating Territory. Franchisee shall not direct or target Franchisee's marketing efforts with the purpose or effect of soliciting or attracting customers outside of Franchisee's Operating Territory. To the extent that Franchisee's marketing efforts involve a marketing medium or distribution channel that is targeted to Franchisee's Operating Territory but reaches outside of and beyond Franchisee's Operating Territory Franchisor, in Franchisor's Reasonable Business Judgment, shall have the right to direct and require Franchisee to discontinue such marketing;
  • (4) At all times, Franchisee hereby grants to Franchisor the right, without compensation to Franchisee, to use Franchisee's name, address, photograph, and biographical information in any publication related to the System, including in relation to the sale of Dryer Vent Squad Business franchises; and
  • (5) At all times, Franchisee hereby grants to Franchisor the right to use of Franchisee's financial data and information related to the financial performance of the Franchised Business for reporting purposes within Franchisor's publicly issued and published Franchise Disclosure Document, including in relation to the sale of franchises.

9.C. ADVERTISING COOPERATIVE

At all times Franchisor, in Franchisor's Reasonable Business Judgment, possesses the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Dryer Vent Squad Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Dryer Vent Squad Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:

  • (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Dryer Vent Squad Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined 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. All contributions to the Advertising Cooperative shall be maintained and administered in accordance with the documents governing the Advertising Cooperative.

Source: Item 23 — RECEIPTS (FDD pages 51–207)

What This Means (2024 FDD)

According to the 2024 Dryer Vent Squad Franchise Disclosure Document, franchisees must target their marketing efforts directly to their operating territory and avoid soliciting customers outside of it. If marketing efforts inadvertently reach beyond the territory, Dryer Vent Squad has the right to require the franchisee to discontinue that marketing. The franchisee grants Dryer Vent Squad the right to use their name, address, photograph, and biographical information in any publication related to the Dryer Vent Squad system without compensation.

Dryer Vent Squad retains the right to establish advertising cooperatives in designated markets where two or more franchises are located. If a franchisee's business is within the area of an Advertising Cooperative, they must participate in and contribute to it. The franchisor can establish foundational and organizational requirements for these cooperatives, including voting provisions where decisions are made by a simple majority vote, with a quorum of 25% of the franchisees within the cooperative.

Advertising Cooperatives are organized to administer marketing programs and develop media, all subject to Dryer Vent Squad's review and approval. If an Advertising Cooperative exists at the time the Franchise Agreement is executed or is established during the term of the agreement, the franchisee must fully participate and execute all required documents to become a member. Digital Media is defined as any interactive or static electronic document, application, or media connected to the internet, including websites and social media platforms, used to promote Dryer Vent Squad businesses.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.