Is there currently a system-wide advertising fee required for Endless Summer Sweets franchisees?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 6% of your gross | Weekly | See Notes 1 and Note 2. | |
| sales | |||
| 1% of your gross | You are not required at this time to pay us | ||
| sales | 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. | |||
| We have the right to establish local or | |||
| regional advertising cooperatives. Any | |||
| location owned by us or any affiliate will | |||
| have the same voting rights as our | |||
| franchisees. Dues will be imposed by a | |||
| majority vote and will not be less than 1% | |||
| of gross sales. If any location owned by us | |||
| or any affiliates have a majority vote, the | |||
| maximum fees imposed will not exceed | |||
| 3% of gross sales. |
Source: Item 6 — Other Fees (FDD pages 7–10)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, franchisees are not currently required to pay a system-wide advertising fee. However, Endless Summer Sweets retains the right to establish such a fee in the future.
Endless Summer Sweets also has the right to establish local or regional advertising cooperatives. If these 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 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 means that while there is no immediate advertising fee, prospective Endless Summer Sweets franchisees should be aware that one could be implemented in the future at the franchisor's discretion. Additionally, franchisees might be subject to local or regional advertising fees determined by a cooperative, where the franchisor's own locations could influence the fee amount.