Does Monicals Pizza contribute any funds to a franchisee's local advertising efforts?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not spend any funds on advertising your franchised restaurant in your local area. (Franchise Agreement, Section 11.2)
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- We may develop a System-wide marketing fund, and you must contribute to the fund. (Franchise Agreement, Section 11.3) We will set the exact percentage that you must contribute and we may adjust the percentage periodically. We will administer the marketing fund as follows:
- (a) We will control the creative concepts and the materials and media to be used, and we will determine the placement and allocation of advertisements. We may use print, television, radio, Internet or other media for advertisements and promotions. We do not guarantee that any particular franchisee will benefit directly or in proportion to their contribution from the placement of advertising by the marketing fund.
- (b) We may use your contributions to meet or reimburse us for any cost of producing, maintaining, administering and directing consumer advertising (including the cost of preparing and conducting television, radio, Internet, magazine, direct mail and newspaper advertising campaigns and other public relations activities; developing and/or hosting an Internet web page of similar activities; employing advertising agencies to assist therein; providing promotional brochures; conducting market research; and providing other marketing materials to franchisees). We will maintain your contributions in a separate account from our funds and we will not use them for any of our general operating expenses, except for our reasonable administrative costs and overhead related to the administration of the marketing fund. We will not use marketing fund contributions for the direct solicitation of franchise sales.
- (c) We expect to use all contributions in the fiscal year they are made. We will use any interest or other earnings of the marketing fund before we use current contributions. We intend for the marketing fund to be perpetual, but we have the right to terminate it if necessary. We will not terminate the marketing fund until all contributions and earnings have been used for advertising and promotional purposes or have been returned to our franchisees on a pro rata basis.
- (d) All Monical's restaurants owned by an affiliate or us will make similar contributions to the marketing fund as required of franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 20–27)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, franchisees are responsible for their local advertising expenses. Monicals Pizza will not spend any funds on advertising a franchised restaurant in the local area. Franchisees must spend at least 2% of the previous month's gross sales on local advertising, promotions, and public relations. Franchisees pay for these local ads and promotions directly. However, Monicals Pizza will provide general marketing guidelines and review and approve franchisee advertisements.
Monicals Pizza may develop a System-wide marketing fund, which franchisees must contribute to. The exact percentage of contribution is set and may be adjusted periodically by Monicals Pizza. The funds are used for consumer advertising, including television, radio, internet, magazine, direct mail, and newspaper advertising campaigns. Monicals Pizza controls the creative concepts, materials, media, placement, and allocation of these advertisements. There is no guarantee that any franchisee will directly benefit from the placement of advertising by the marketing fund in proportion to their contribution.
Monicals Pizza may also create a cooperative advertising program for restaurants in a particular region, and franchisees must participate in any cooperative advertising program established for their region. Monicals Pizza has the right to collect and designate all or a portion of the local advertising for a cooperative advertising program. Monicals Pizza can change, dissolve, or merge such programs and/or councils at any time.
In summary, Monicals Pizza franchisees are required to handle and pay for their local advertising, though Monicals Pizza provides guidelines and approval. While franchisees contribute to a system-wide marketing fund and may participate in cooperative advertising programs, these are managed by Monicals Pizza, and there is no direct contribution from Monicals Pizza to the franchisee's individual local advertising efforts.