Does Ella Cafe provide marketing guidelines for local advertisements?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Local Advertisement. Each month, you must spend at least 2% of your Gross Sales on advertising, promotions and public relations in the local area surrounding the Franchised Business. We can require you to spend up to 3% of Gross Sales on your Local Advertisement expenditure. You will pay for your ads and promotions directly, but we will provide you with general marketing guidelines and we will review and approve your advertisements.
You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected.
Brand Marketing Fee. We engage in System-wide marketing, advertising, and promotion to assist in our regional and national advertising. You must pay a Brand Marketing Fee ("Brand Marketing Fee") in an amount we specify periodically, but not to exceed 3% of Gross Sales during the term of this Agreement. Currently, we require contribution of 2% of Gross Sales.
All marketing and promotion must be conducted in a professional and dignified manner and must conform to our specified standards and requirements. All marketing and promotional materials, including product identification materials, point-of-purchase promotional materials, promotion memorabilia, and merchandise and prizes, will either be provided for you, or be made available to you for purchase through us.
We may create and license to you, social media accounts, e-mail marketing software accounts and other electronic accounts that use the Marks or any portion of them, used by you with any Internet directory, website, platform, or similar item in the operation of your Franchised Business. You may not create websites, social media accounts, e-mail marketing software accounts or other comparable accounts outside of those which we license to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees are required to spend a minimum of 2% of their gross sales each month on local advertising, promotions, and public relations. Ella Cafe can increase this requirement up to 3% of gross sales. While franchisees pay for their local advertising and promotions directly, Ella Cafe will provide general marketing guidelines and review and approve all advertisements. Franchisees may also use their own advertising or marketing material, but only with Ella Cafe's approval, which requires submitting the material at least 14 days prior to use. If Ella Cafe does not respond within that timeframe, the material is deemed rejected.
Ella Cafe also engages in system-wide marketing, advertising, and promotion to assist in regional and national advertising. Franchisees must pay a Brand Marketing Fee, which is currently 2% of gross sales, but may be increased up to 3% of gross sales during the term of the Franchise Agreement. Ella Cafe controls the creative concepts, materials, and media used in advertising and determines the placement and allocation of advertisements, which may include print, television, radio, and internet.
All marketing and promotion conducted by Ella Cafe franchisees must be professional and dignified and conform to Ella Cafe's specified standards and requirements. Marketing and promotional materials, including product identification materials, point-of-purchase promotional materials, promotion memorabilia, and merchandise and prizes, will either be provided or made available for purchase through Ella Cafe. Ella Cafe may create and license social media accounts, e-mail marketing software accounts, and other electronic accounts that use the Marks for use with any Internet directory, website, platform, or similar item in the operation of the Franchised Business. Franchisees may not create websites, social media accounts, e-mail marketing software accounts or other comparable accounts outside of those which Ella Cafe licenses to them.