Who manages the Extreme Art Studio Brand Fund?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We, or our affiliate or designees, will manage the Brand Fund. We may prepare advertising materials ourselves or hire national and/or regional advertising agencies to create them. We have complete discretion on how the Brand Fund will be utilized. We may use the Brand Fund for local, regional, or national marketing, advertising, sales promotion and promotional materials, public and consumer relations, website development and search engine optimization, the development of technology for the System, and any other purpose to promote the Extreme Art brand. We may reimburse ourselves, our authorized representatives, or our affiliates from the Brand Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes, and all other direct or indirect expenses associated with the programs funded by the Brand Fund. We do not guarantee that advertising expenditures from the Brand Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Brand Fund Contributions for advertising that is principally a solicitation for the sale of Franchises, but we reserve the right to include a notation in any advertisement indicating "Franchises Available," or similar phrasing, or include information regarding acquiring a Franchise on or as a part of materials and items produced by or for the Brand Fund.
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, the Brand Fund is managed by Extreme Art Studio, its affiliates, or designees. Extreme Art Studio has complete discretion over how the Brand Fund is utilized, including for local, regional, or national marketing, advertising, sales promotion and promotional materials, public and consumer relations, website development and search engine optimization, and the development of technology for the System.
Extreme Art Studio may also reimburse itself, its authorized representatives, or its affiliates from the Brand Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes, and all other direct or indirect expenses associated with the programs funded by the Brand Fund. The document specifies that Extreme Art Studio does not guarantee that advertising expenditures from the Brand Fund will benefit any franchisee directly or on a pro rata basis, and they are not obligated to spend any amount on advertising in the geographical area where a franchisee is located.
The Brand Fund is not audited, but Extreme Art Studio will provide an annual unaudited accounting for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year upon written request. Franchisees are required to contribute one percent (1%) of their gross sales to the Brand Fund. In addition to the Brand Fund contribution, each Extreme Art Studio Business must spend $500 per month on local advertising.