Can Dryer Vent Squad use the Brand Development Fund for technology development?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
u 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.
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 technology development. Franchisees may be required to contribute up to 2% of their monthly Gross Sales to this fund. Dryer Vent Squad has the discretion to use the Brand Development Fund for various purposes that it believes are in the best interest of the franchisees and the Dryer Vent Squad system.
Specifically, the Brand Development Fund may be used 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, and administrative costs. These administrative costs may include reimbursement for direct administrative and personnel costs associated with advertising and public relations.
Dryer Vent Squad may also use 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. These technology developments and/or improvements may relate to the Dryer Vent Squad website and to the interaction and potential enhancement of web offerings that may or may not be implemented on behalf of Dryer Vent Squad Businesses. The FDD states that franchisees may or may not benefit from these technology developments and improvements.
While Dryer Vent Squad is not required to segregate the Brand Development Fund from its general operating funds and is not a fiduciary or trustee of the Brand Development Fund, it will maintain unaudited financial records detailing the fund's expenditures. Dryer Vent Squad will make available to franchisees (no more frequently than once in any 12-month period) an unaudited accounting of how the monies contributed to the Brand Development Fund were spent each year. The Brand Development Fund will not be used to directly promote an individual Dryer Vent Squad Business or the marketing area in which the business is located, but the advertising, marketing, and brand development materials developed, including the System website, may contain information as to the availability of Dryer Vent Squad Business franchises for sale and contact information for franchise inquiries.