What are some examples of costs that the Marble Slab Creamery national advertising fund can be used to cover?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2.3 The Fund, all contributions thereto, and any earnings thereon will be used exclusively to reimburse Franchisor for advances relating to, and/or to meet any and all future costs of maintaining, administering, directing, and preparing advertising and/or promotional activities (including, among other things, the cost of preparing and conducting television, radio, magazine, and newspaper advertising campaigns; direct mail and outdoor billboard advertising; marketing surveys and other public relations activities; sponsorship of athletic and other events and activities; soliciting franchisee sales; use of advertising agencies to assist therein; and promotional brochures and other marketing materials for restaurants operated under the System). Without limiting the foregoing, Franchisor may, at its option, use up to 15% of the contributions to the Fund for soliciting franchise sales.
- 10.2.4 Franchisee will contribute to the Fund by separate check (or EFT payment) made payable to the Fund, or in the manners provided in Section 4.6. All sums paid by Franchisee to the Fund will be maintained in an account separate from the other monies of Franchisor and will not be used to defray any of Franchisor's expenses, except for such reasonable administrative costs
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the national advertising fund is used to cover a variety of advertising and promotional activities. These activities are intended to increase public recognition and acceptance of the Marble Slab Creamery brand. The franchisor has sole discretion over the marketing programs, materials, and media used. Franchisees are not guaranteed to benefit directly or proportionally from the fund's expenditures.
The advertising fund can be used to reimburse Marble Slab Creamery for advances related to maintaining, administering, directing, and preparing advertising and promotional activities. Examples of covered costs include television, radio, magazine, and newspaper advertising campaigns, as well as direct mail and outdoor billboard advertising. The fund also covers marketing surveys, public relations activities, and the sponsorship of athletic and other events.
Additionally, the fund can be used for soliciting franchisee sales, engaging advertising agencies, and creating promotional brochures and other marketing materials for Marble Slab Creamery restaurants. Notably, up to 15% of the contributions to the fund may be used for soliciting franchise sales. The franchisee contributions are kept in a separate account from the franchisor's other funds and are not used for the franchisor's expenses, except for reasonable administrative costs.