What restrictions apply to an Endless Summer Sweets franchisee's use of trademarks in advertising?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
g, 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 percent (1%) of your Gross Sales each
week to the Fund. All franchisees will contribute to the Fund at the same rate. Any restaurants in which we or our affiliates have an ownership interest, may, but are not obligated to, contribute to the Fund.
The Fund is not a trust or escrow account, and we do not have any fiduciary obligations with respect to the or any advertising fees we receive.
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, franchisees face several restrictions regarding the use of trademarks in advertising and promotional materials. A franchisee must use only approved advertising and promotional materials for local advertising. If a franchisee wants to use unapproved materials bearing the Endless Summer Sweets name or other proprietary marks, they must obtain prior written approval from Endless Summer Sweets. If approval is not provided within 10 days, the materials are deemed disapproved.
Endless Summer Sweets requires franchisees to use marketing, advertising, and promotional materials that depict their trademarks only in connection with the sale of approved services and products related to the business. All marketing, advertising, and promotional materials must be current, in good taste, and in good condition, and they must communicate the brand position and character established by Endless Summer Sweets. The company may periodically make advertising, marketing, and promotion materials available for purchase from Endless Summer Sweets, its affiliates, or designated/approved suppliers.
Regarding online presence, an Endless Summer Sweets franchisee may not use any electronic media, including the Internet or social media, that contains or is associated with the Endless Summer Sweets restaurant business or its registered trademarks without prior written approval. Franchisees need written approval to establish pages or post content related to the business on platforms like Facebook, MySpace, SnapChat, Twitter, TikTok, Instagram, or YouTube. Endless Summer Sweets retains the right to approve all social media content that displays or is associated with its trademarks or the franchisee's business and may require the franchisee to withdraw or discontinue the use of any social media posts or content, even if previously approved.