What powers does the AdCom Board have regarding the Lees Famous Recipe advertising fund budget?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 7.2 Powers
The Board will have the power to:
- (a) establish budgets and invest and reinvest AdCom funds:
- (b) approve programs, promotions and advertising formats;
- (c) hire, fire, review and approve plans and proposals of the Agency;
- (d) recommend and implement suspension of members;
- (e) fix and approve expenditures for advertising and marketing materials; and
- (f) make and implement rules and policies for all advertising, marketing and other business of AdCom consistent with these By-Laws; provided, that each member shall be free to adopt his own pricing policies and practices;
- (g) Any power authorized by Florida law governing Not-for-Profit corporations.
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, the AdCom Board of Directors has significant control over the advertising fund. The Board is responsible for managing the business affairs of AdCom, including establishing budgets, investing and reinvesting AdCom funds. This means the board decides how the advertising money is spent and can adjust the budget as needed.
Specifically, the AdCom Board can approve advertising programs, promotions, and formats, ensuring they align with the overall marketing strategy. They also have the authority to hire, fire, review, and approve plans and proposals from the advertising agency used by Lees Famous Recipe. This oversight ensures the agency is meeting the needs of the cooperative and that the advertising efforts are effective. The Board also fixes and approves expenditures for advertising and marketing materials.
Furthermore, the AdCom Board can create and enforce rules and policies for all advertising and marketing activities, as long as these are consistent with the AdCom bylaws. However, individual Lees Famous Recipe members retain the freedom to set their own pricing policies. The AdCom budget operates on a cash basis, meaning that budgeted expenditures cannot exceed budgeted revenues, and any surplus funds are retained for future use. This fiscal responsibility helps ensure the long-term viability of the advertising fund.
Overall, the AdCom Board's powers are designed to ensure that the advertising fund is managed effectively and used to promote the Lees Famous Recipe brand in a way that benefits all members. However, franchisees should note that the Board's decisions can impact their advertising strategies, and it's important to stay informed about and participate in AdCom activities to ensure their voices are heard.