What is included in the local advertising expenditures for an Endless Summer Sweets franchise?
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 Endless Summer Sweets's 2024 Franchise Disclosure Document, local advertising expenditures include advertising, merchandising, sales promotion, and other forms of advertising at the local level. Franchisees are required to spend 3% of their gross sales per month on these advertising and promotional activities. These activities must be approved by Endless Summer Sweets or described in the Operations Manual or otherwise in writing.
Endless Summer Sweets encourages franchisees to spend additional amounts on local advertising and promotional activities beyond the required minimum. By February 28th of each year, franchisees must provide Endless Summer Sweets with an accounting and documentation of their local advertising and promotional activities from the previous calendar year.
If a franchisee fails to spend the required minimum amount on approved local advertising and promotional activities, they must pay Endless Summer Sweets the difference between the required spending and the actual spending. This ensures that all franchisees contribute adequately to local marketing efforts, maintaining brand visibility and driving local sales.