Under what circumstances can Endless Summer Sweets require a franchisee to participate in advertising or promotional campaigns?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by Franchisor. Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Franchisor, in the manner specified by Franchisor in the Manual or otherwise in writing. Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Endless Summer Sweets business.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets Franchise Disclosure Document, franchisees are required to participate in advertising or promotional campaigns under two specific circumstances. First, Endless Summer Sweets requires franchisees to sell or issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs designated by Endless Summer Sweets. The manner of participation will be specified in the Manual or in writing.
Second, Endless Summer Sweets may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. If a Market Cooperative exists for the franchisee's location when the franchisee begins operations, the franchisee must immediately become a member. If a Market Cooperative is established after the franchisee has commenced operations, the franchisee must join within thirty days. Endless Summer Sweets will not require a franchisee to be a member of more than one Market Cooperative.
These stipulations mean that franchisees must budget for and actively engage in both franchisor-led and local advertising initiatives to promote the Endless Summer Sweets brand and attract customers. Franchisees should inquire about the typical costs and time commitments associated with these programs to fully understand their obligations.