If an Extreme Art Studio franchisee desires to use their own advertising materials, what must they do?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
and Internet Marketing*
You must order sales and marketing material from us or our designated suppliers. It is a material breach of the Franchise Agreement to use other marketing material without obtaining our prior written approval. If you desire to use your own advertising materials, you must obtain our prior approval, which may be granted or denied in our sole discretion. We will review your request and we will respond in writing within 30 days from the date we receive all requested information. Our failure to notify you in the specified time frame will be deemed a disapproval of your request. Use of logos, Marks, and other name identification materials must follow our approved standards. You may not use our logos, Marks, and other name identification materials on items to be sold or services to be provided without our prior written approval. If we approve of promotional items or services that will be sold in or through your Extreme Art Studio Business, those items or services must be in your Gross Sales, and will be subject to royalties, Local Advertising Requirement, and the Brand Fund Contributions. If you use unauthorized advertising materials, you must pay a fee of $500 per occurrence
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, a franchisee who wants to use their own advertising materials must first obtain prior written approval from Extreme Art Studio. The franchisor has the sole discretion to grant or deny this approval. Extreme Art Studio will review the franchisee's request and respond in writing within 30 days of receiving all the necessary information. Failure by Extreme Art Studio to respond within this timeframe is considered a disapproval of the request.
This requirement ensures that all marketing materials align with Extreme Art Studio's brand standards and protect its trademarks. The FDD states that using logos, Marks, and other name identification materials must adhere to approved standards, and these cannot be used on items for sale or services without prior written approval. If unapproved advertising materials are used, the franchisee must pay a fee of $500 per occurrence to Extreme Art Studio or the Brand Fund.
If Extreme Art Studio approves any promotional items or services that will be sold through the franchisee's business, these must be included in the Gross Sales and will be subject to royalties, Local Advertising Requirement, and Brand Fund Contributions. This policy is in place to maintain consistency and quality across all Extreme Art Studio locations and to protect the brand's reputation.
Prospective franchisees should be aware of these requirements and factor in the time needed to get approval for marketing materials. They should also understand the financial implications of using unapproved materials, as well as the inclusion of promotional item sales in gross sales calculations.