Does Management Recruiters establish and administer a marketing and public relations fund?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Establish and administer a marketing and public relations fund pursuant to the terms of the Franchise Agreement. (Franchise Agreement Section 7)
We produce marketing and public relations materials through both our in-house marketing and public relations department and outside vendors. We direct all marketing programs.
The MPRF is used to meet costs of maintaining, administering, directing, conducting, and preparing marketing, public relations, meeting support, and/or promotional programs and materials, supporting technology, and any other activities which we believe will enhance the image of the MRINetwork and provide the tools, resources and support enabling a franchised business to drive and execute their own unique marketing plans. This may include, but it is not limited to, costs of preparing and conducting media advertising campaigns, ongoing management and maintenance of the MRINetwork.com public facing website, tools to produce the marketing tools and resources, marketing surveys, employ advertising and/or public relations agencies and Internet designers to assist us, and marketing consultation services. We have also used the MPRF to support legislative efforts on issues of concern to our offices' businesses.
We use the MPRF to defray some of our expenses, such as our reasonable costs and overhead related to the direction and implementation of the Fund and marketing and public relations programs. This includes costs of personnel for creating, implementing and communications of the advertising, promotional and marketing programs. The current contribution by you is 0.5%. All new members contribute to the MPRF.
During 2023, Marketing and Public Relations fund expenditures were as follows: Creative: 9%; Media: 4%; Tech-Digital: 20%; In-House Marketing Team: 56%; Meetings: 8%; Miscellaneous: 4%.
We have no obligation to make expenditures that are equivalent or proportionate to your Fund contribution or to ensure that you benefit directly or pro rata from the production or placement of advertising from the MPRF. We also have no obligation to spend any amount on advertising in your area.
You may develop advertising materials for your own use, at your own cost, but we do not require any amount be
spent on local advertising. The MPRF is not primarily used to sell additional franchises.
You may request an unaudited accounting of the MPRF by contacting MRI's Finance Department.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 34–40)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters does establish and administer a marketing and public relations fund (MPRF). As stated in Franchise Agreement Section 7, Management Recruiters will "Establish and administer a marketing and public relations fund pursuant to the terms of the Franchise Agreement."
The MPRF is used to cover the costs of marketing, public relations, meeting support, promotional programs, supporting technology, and other activities that Management Recruiters believes will enhance the image of the MRINetwork. These activities may include media advertising campaigns, website management, marketing surveys, and the use of advertising and public relations agencies. The franchisor also uses the fund to defray some of its own expenses related to the direction and implementation of the fund and marketing programs.
Franchisees are required to contribute 0.5% of their monthly Gross Funds to the MPRF, although some long-tenured offices may be permitted to conduct their own marketing with proof of performance. New members are required to contribute to the MPRF. During 2023, the expenditures from the Marketing and Public Relations fund were allocated as follows: 56% to the In-House Marketing Team, 20% to Tech-Digital, 9% to Creative, 8% to Meetings, 4% to Media, and 4% to Miscellaneous.
Management Recruiters is not obligated to spend any specific amount on advertising in a franchisee's particular area, nor are they required to ensure that franchisees benefit directly or proportionally from the fund's expenditures. Franchisees can develop their own advertising materials at their own cost. Franchisees may request an unaudited accounting of the MPRF by contacting MRI's Finance Department.