Does Endless Summer Sweets currently require franchisees to pay an advertising fee?

According to Endless Summer Sweets' 2024 Franchise Disclosure Document, franchisees are not currently required to pay an advertising fee. The FDD specifies that while there isn't a mandatory advertising fee or contribution to an advertising fund at this time, Endless Summer Sweets retains the right to establish a system-wide advertising and marketing fund in the future. This means that while franchisees aren't paying this fee now, they should be prepared for the possibility of it being implemented later.

Endless Summer Sweets also has the right to create local or regional advertising cooperatives. If these cooperatives are established, any location owned by Endless Summer Sweets or its affiliates will have the same voting rights as the franchisees. Dues for these cooperatives will be determined by a majority vote, but they will not be less than 1% of gross sales. If Endless Summer Sweets or its affiliates hold a majority vote in the cooperative, the maximum fees imposed will not exceed 3% of gross sales.

This structure gives Endless Summer Sweets some flexibility in how advertising is managed and funded. Prospective franchisees should consider that while there's no immediate advertising fee, the potential for one exists, either through a system-wide fund or a local cooperative. It would be prudent for potential franchisees to inquire about the conditions under which these advertising fees might be implemented and how they would be managed to ensure they align with their business goals.