What section of the Franchise Agreement discusses the Flowerama local advertising requirements?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
During each calendar year, you must spend a minimum of 1% of gross sales for local advertising and promotion of your Flowerama Center. You may use your own advertising material, but the media and content of your advertising is subject to our approval. (Franchise Agreement - Section 22 A). In lieu of the above advertising requirement, we, at our sole option, may establish a "Marketing Fund" for Flowerama Centers. (Franchise Agreement - Section 22 B).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 38–52)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, Section 22 A of the Franchise Agreement outlines the local advertising requirements for franchisees. Specifically, franchisees must spend a minimum of 1% of gross sales on local advertising and promotion each calendar year. While franchisees can use their own advertising material, the content and media channels are subject to Flowerama's approval.
Flowerama retains the option to establish a "Marketing Fund" in lieu of the local advertising requirement. If Flowerama establishes this fund, Section 22 B of the Franchise Agreement dictates that franchisees will be required to contribute 2% of their gross sales each month. These contributions are due by the 10th day of each calendar month for the preceding month's sales.
The Flowerama Marketing Fund is used to enhance the overall Flowerama image through advertising and promotion. These funds are intended to increase general public recognition of the Flowerama brand and drive patronage to Flowerama locations. Flowerama has complete discretion over how the Marketing Fund is spent, including the creative concepts, materials, media, and geographic areas targeted.