What costs can Flowerama reimburse itself for from the Flowerama Marketing Fund?

According to Flowerama's 2024 Franchise Disclosure Document, if a Flowerama Marketing Fund is established, Flowerama has the right to reimburse itself from the fund for the total costs of developing, producing, and distributing advertising materials. This also includes the costs associated with collecting the Advertising Fee, such as attorneys', auditors', and accountants' fees, as well as other expenses incurred in connection with collecting the Advertising Fee.

This means that a portion of the money franchisees pay into the Flowerama Marketing Fund could be used to cover Flowerama's expenses related to advertising and collecting fees. This is a fairly standard practice in franchising, as marketing funds are often used to offset the franchisor's costs of managing and promoting the brand. However, it's important for prospective franchisees to understand how the fund is managed and what types of expenses are being reimbursed.

It is important to note that the FDD states that the Flowerama Marketing Fund has not yet been established. If it is established in the future, Flowerama is entitled to receive reimbursement from the Fruit Bouquets Marketing Fund for all direct and indirect expenses incurred for the development, supervision and administration of the marketing programs and the Marketing Fund. No portion of the Fruit Bouquets Marketing Fund will be used for advertising for the sale of franchises. Franchisees should pay close attention to how the fund is used and ensure that it aligns with their expectations for brand promotion and support.