factual

Can Dryject use the Marketing Fund to reimburse its own advertising-related costs?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

A portion of the Marketing Fund may be used to reimburse Us or Our designees for Our reasonable advertising-related administrative costs, indirect expenses and subsidizing costs. As the DryJect System expands, We may establish an advertising council.

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to the 2025 Dryject FDD, Dryject has the right to use a portion of the Marketing Fund to reimburse itself or its designees for advertising-related costs. These costs can include reasonable administrative expenses, indirect expenses, and subsidizing costs. This means that while franchisees contribute to the Marketing Fund, Dryject can use some of those funds to cover its own expenses related to managing and executing advertising and marketing efforts.

This arrangement is fairly common in franchising, as the franchisor often bears the responsibility for creating and managing marketing campaigns that benefit the entire system. By allowing reimbursement for these costs, Dryject ensures that it can continue to invest in marketing initiatives without solely bearing the financial burden. However, it's important for prospective franchisees to understand how these funds are being allocated and to ensure that the franchisor is transparent about the expenses being reimbursed.

As the Dryject system expands, the FDD states that Dryject may establish an advertising council. This council could potentially provide franchisees with more input on how the Marketing Fund is used and ensure that their interests are being represented. Franchisees should inquire about the composition and responsibilities of this council, if it is established, to understand how they can participate in marketing decisions and oversee the use of the Marketing Fund.

Disclaimer: This information is extracted from the 2025 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.