What level of effort is required to promote the Extreme Art Studio Business?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
before you implement your grand opening marketing program, which shall include proposed marketing materials and promotions to gain brand exposure in your Territory. We will provide you with templates for certain promotional and advertising
materials, and consultation in connection with the grand opening marketing program for your Extreme Art Studio Business. Upon our request, you agree to send us, in the manner we prescribe, an accounting of your grand opening marketing program expenditures.
9.2 LOCAL ADVERTISING.
- 9.2.1 For each Extreme Art Studio Business you operate, you agree to spend $500 each calendar month to advertise and promote the Franchised Business (which may include the costs of online advertising) ("Local Advertising Requirement"). Upon our request, you agree to send us, in the manner we prescribe, an accounting of your Local Advertising Requirement during the preceding months. If you fail to meet your required Local Advertising Requirement in any month, you must pay us the difference between the amount you spent and the minimum Local Advertising Requirement, which will be contributed to the Brand Fund (as defined in Section 9.3), if established.
- 9.2.2 You agree, at your sole cost and expense, to issue and offer such rebates, giveaways and other promotions in accordance with advertising programs established by us, and further agree to honor the rebates, giveaways and other promotions issued by other Extreme Art Studio franchisees under any such program, so long as such compliance does not contravene any applicable law, rule or regulation. You will not create or issue any gift cards/certificates, and will only sell gift cards/certificates that have been issued or sponsored by us and which are accepted at all Extreme Art Studio Businesses, and you will not issue coupons or discounts of any type except as approved by us.
- 9.2.3 Any advertising and promotion conducted by you with respect to the Franchised Business must follow our guidelines. All advertising and promotional materials that you develop for the Franchised Business must contain notices of the domain of our System Website (as defined in Section 9.5 below) in the manner we designate. You agree that your advertising, promotion and marketing will be completely clear, factual, and not misleading and conform to both the highest standards of ethical advertising and marketing and the advertising and marketing policies that we prescribe from time to time. All advertising, promotion and marketing must conform to our System Standards. At least ten days before you intend to use them, you agree to send us for approval samples of all advertising, promotional and marketing materials that we
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees must dedicate effort and resources to promote their business, both during the grand opening and on an ongoing monthly basis. Franchisees are responsible for the day-to-day management, direction, and control of their Extreme Art Studio Business and must continuously exert their best efforts to promote and enhance their Extreme Art Studio Business.
During the grand opening phase, Extreme Art Studio requires franchisees to spend between $5,000 and $10,000 on an approved advertising campaign. In addition to this initial investment, franchisees must allocate $500 each calendar month for local advertising and promotion. This ongoing expense can cover various advertising costs, including online advertising. Franchisees must provide an accounting of these expenditures if requested by Extreme Art Studio. Failure to meet the minimum monthly advertising requirement results in the franchisee paying the difference to Extreme Art Studio, which will contribute the funds to the Brand Fund, if established.
Extreme Art Studio retains control over advertising programs, requiring franchisees to issue rebates, giveaways, and other promotions in accordance with the franchisor's established programs. Franchisees must honor promotions issued by other Extreme Art Studio franchisees. However, franchisees cannot independently create or issue gift cards/certificates, coupons, or discounts without the franchisor's approval. All advertising and promotional materials developed by the franchisee must adhere to Extreme Art Studio's guidelines and be submitted for approval at least ten days before use. The franchisor has five days to approve or disapprove the materials.