What is the Endless Summer Sweets franchisee's obligation to promote and advertise their business?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
number. (Section 5.5)
Advertising
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.
You must obtain our approval (in writing) of all marketing, advertising and promotional materials before use, including any of your own materials, at least 10 days before the deadline for running or using the marketing, advertising or promotional materials. Any marketing, advertising or promotional materials not approved by us within 14 days will be deemed disapproved. At any time, we may require you to stop any marketing, advertising or promotion. You must use marketing, advertising and promotional materials that depict any of our trademarks only in connection with your sale of approved services and products in connection with your Business. Any marketing, advertising and promotional materials you use must be current, in good taste and in good condition and communicate the brand position and character that we have established for franchised businesses. We may periodically make available for purchase, from us or our affiliates or designated or approved suppliers, certain advertising, marketing and promotion materials.
You may use only approved advertising and promotional materials for your local advertising. If you desire to use any unapproved advertising or promotional materials bearing the name Endless Summer Sweets restaurant, or other Marks proprietary to us, or any portion of those items, you must obtain our prior written approval before using those materials. Any advertising or promotional materials not approved by us within 10 days will be deemed to be disapproved. You must use your best efforts to promote and advertise your Business and will participate in all advertising and promotional programs we establish in the manner we direct as described in the Operations Manual or otherwise in writing.
Market Introduction Advertising and Marketing. We recommend that you spend a minimum of $2,500 on initial advertising and promotional materials and advertising, promotion, and events to promote and execute the opening of your Endless Summer Sweets restaurant, which must be coordinated with us and must occur not more than 30 days before or 30 days after the first day you open your Business. We must approve all Market introduction advertising. Your minimum expenditure on market introduction advertising is in addition to the local advertising requirements described above.
Brand Marketing Fund. You are not required at this time to pay us an advertising fee or contribute to an advertising fund that we administer. However, we reserve the right to establish a system-wide advertising and marketing fund. If we establish an advertising and marketing fund (the Fund), we will provide you with thirty (30) days' advance notice of the establishment of the Fund. If we establish this fund, you will contribute one
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 must dedicate efforts to promote and advertise their business. Franchisees are obligated to participate in all advertising and promotional programs established by Endless Summer Sweets, adhering to the methods outlined in the Operations Manual or other written directives.
For local advertising, Endless Summer Sweets requires franchisees to spend 3% of their gross sales each month on advertising and promotional activities, utilizing types approved by the company or detailed in the Operations Manual. Franchisees are encouraged to exceed this minimum. By February 28th of each year, franchisees must provide an accounting and documentation of their local advertising and promotional activities from the previous year. Failure to meet the minimum spending requirement will result in the franchisee paying Endless Summer Sweets the difference between the required amount and the actual expenditure.
Endless Summer Sweets also recommends that franchisees allocate a minimum of $2,500 on initial advertising and promotional materials to promote the opening of their restaurant. This market introduction advertising must be coordinated with and approved by Endless Summer Sweets and occur within 30 days before or after the business's opening day. Franchisees must obtain written approval for all marketing materials at least 10 days before their use, with a 14-day disapproval period. Endless Summer Sweets retains the right to halt any marketing, advertising, or promotion at any time.
Endless Summer Sweets may establish a system-wide advertising and marketing fund, requiring franchisees to contribute 1% of their gross sales each week, with 30 days' notice. Franchisees must also participate in any local or regional advertising cooperatives formed or approved by Endless Summer Sweets. Franchisees must use Endless Summer Sweets' website and obtain prior written approval to use electronic or social media for their business. These stipulations ensure brand consistency and controlled marketing efforts across all franchise locations.