What is the deadline for a Monicals Pizza franchisee to furnish the Franchisor with an accounting of Local Advertising expenditures each month?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2.1 Franchisee shall be required to spend at least two percent (2%) of the previous month's Gross Sales on advertising, promotions and public relations within the immediate locality surrounding the Franchised Restaurant ("Local Advertising"). If required, such expenditures shall be made directly by Franchisee, subject to the prior approval and direction of Franchisor. Franchisor shall provide general guidelines to Franchisee for conducting Local Advertising. Within thirty (30) days after the end of each month, Franchisee shall furnish to Franchisor an accurate accounting of the expenditures on Local Advertising that month.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are required to submit an accounting of their local advertising expenditures to the franchisor within thirty days after the end of each month. This means that Monicals Pizza franchisees must track and document all spending on local advertising, promotions, and public relations efforts in the immediate vicinity of their restaurant.
This requirement ensures that franchisees are adhering to the brand's advertising standards and spending the required minimum of two percent of the previous month's gross sales on local advertising. By providing this accounting, Monicals Pizza can verify that franchisees are actively promoting their restaurants within their local markets.
For a prospective Monicals Pizza franchisee, this means maintaining meticulous records of all local advertising expenses, including invoices, receipts, and descriptions of the advertising activities. It also implies a need to stay organized and meet the monthly deadline to avoid potential issues with the franchisor. This is a fairly standard practice in franchising, as franchisors need to ensure brand consistency and adequate local marketing efforts across all locations.