What documentation is required for the accounting of local advertising and promotional activities for Endless Summer Sweets?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
Local Advertising. You must spend three percent (3%) of your gross sales per month on
advertising and promotional activities during each calendar year, in such types as we approve or as described in the Operations Manual or otherwise in writing. We encourage you, however, to spend additional amounts on local advertising and promotional activities beyond the minimum amounts required under the Franchise Agreement. Your local advertising expenditures will include advertising, merchandising, sales promotion and other forms of advertising at the local level. By February 28 each year, you must provide us with an accounting of the monies that you spent and documentation of the local advertising and promotional activities you executed during the preceding calendar year. If you fail to spend the required minimum amount during any calendar year on approved local advertising and promotional activities, you must pay us the difference between what you should have spent on approved local advertising and promotional activities during that year, and what you actually spent on those items during that year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–25)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, franchisees are required to provide an accounting of their local advertising and promotional activities. By February 28th of each year, the franchisee must submit documentation of the monies spent and the local advertising and promotional activities executed during the previous calendar year. This accounting ensures that franchisees are meeting their required local advertising expenditure.
Endless Summer Sweets requires franchisees to spend a minimum of 3% of their gross sales per month on local advertising and promotional activities. These activities must be approved by Endless Summer Sweets and can include advertising, merchandising, sales promotions, and other forms of local-level advertising. The documentation submitted should reflect these approved activities and the corresponding expenses.
If a franchisee fails to meet the minimum spending requirement on approved local advertising, they must pay Endless Summer Sweets the difference between the required amount and the actual amount spent. This policy ensures that all franchisees contribute adequately to local marketing efforts, maintaining brand visibility and supporting business growth within their respective territories.