Can Dryer Vent Squad use the Brand Development Fund for service development?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
We may control and administer a brand development fund (the "Brand Development Fund") (Franchise Agreement, Article 9.A.).
As disclosed in Item 6 of this Disclosure Document, you must contribute a monthly sum not to exceed 2% of monthly Gross Sales to the Brand Development Fund.
We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System.
Our company and/or affiliate owned Dryer Vent Squad Businesses may but are not required to contribute to the Brand Development Fund.
The Brand Development Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12-month period) an unaudited accounting of how the monies contributed to the Brand Development Fund were spent each year.
We are not required to segregate the Brand Development Fund from our general operating funds and we are not a fiduciary or trustee of the Brand Development Fund.
The Brand Development Fund will not be used to directly promote your Dryer Vent Squad Business or the marketing area in which your Dryer Vent Squad Business will be located. (Franchise Agreement, Article 9.A.).
We may utilize the Brand Development Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Dryer Vent Squad Businesses and the marketing of Dryer Vent Squad Businesses.
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, the Brand Development Fund can be used for service development. Dryer Vent Squad may control and administer this fund, which franchisees contribute to via a monthly sum not exceeding 2% of monthly Gross Sales.
The FDD specifies that the Brand Development Fund may be used for various purposes including market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials.
Dryer Vent Squad and its affiliates may contribute to the Brand Development Fund, but are not required to do so. The fund is not required to be segregated from Dryer Vent Squad's general operating funds, and Dryer Vent Squad is not considered 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 marketing area. However, Dryer Vent Squad may use the fund to develop and test media and technologies to improve the operations and marketing of Dryer Vent Squad Businesses.