Is there a limit to how much a Dryer Vent Squad franchisee must contribute to the Advertising Cooperative?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
t 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.;
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad FDD, if a franchisee's Dryer Vent Squad Business or Operating Territory is located within the geographic area of an Advertising Cooperative, the franchisee must participate in and contribute to it. The amount a franchisee contributes to the Advertising Cooperative will be determined and required by the Advertising Cooperative itself or according to the documents governing its operation.
However, the FDD stipulates that a Dryer Vent Squad franchisee's contributions to the Advertising Cooperative will not exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the Franchise Agreement. Furthermore, any contributions made to the Advertising Cooperative will count toward satisfying these minimum local marketing obligations. This means that while participation in the Advertising Cooperative is mandatory if one is established in the franchisee's area, there is a limit to the financial burden, as it is capped by the local minimum marketing obligations.
It's also important to note that Dryer Vent Squad businesses owned by the franchisor or its affiliates within the Advertising Cooperative's geographic area are not required to contribute to the cooperative. All marketing materials, plans, or media used by the Advertising Cooperative or its members must receive prior written approval from Dryer Vent Squad.