Does Management Recruiters use advertising funds for the solicitation of new members?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
You are required to contribute 0.5% of your monthly Gross Funds to the Marketing and Public Relations Fund (the "MPRF"). Not all offices contribute to the MPRF. A few long tenured offices have been permitted to conduct their own marketing and send proof of performance to us. We do not allow this for new members. We do not use any advertising funds for the solicitation of new members; however, we may include mention of franchise availability in any marketing materials.
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, advertising funds are not used for soliciting new members. However, the FDD states that Management Recruiters may include mention of franchise availability in any marketing materials.
The document specifies that franchisees are required to contribute 0.5% of their monthly Gross Funds to the Marketing and Public Relations Fund (MPRF). Not all offices contribute to the MPRF, as some long-tenured offices have been permitted to conduct their own marketing, but this is not allowed for new members.
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. This includes media advertising campaigns, website maintenance, marketing surveys, and employing advertising agencies. During 2023, the expenditures from the Marketing and Public Relations fund were allocated as follows: 9% for creative, 4% for media, 20% for tech-digital, 56% for the in-house marketing team, 8% for meetings, and 4% for miscellaneous expenses.