Is the Grand Opening Advertising expenditure for a Monicals Pizza franchise in addition to Local Advertising and Marketing Fund Contributions?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to, and/or during a period of approximately three (3) months following the initial opening of the Franchised Restaurant, Franchisee shall spend an amount specified by Franchisor on local advertising and promotion of the initial opening ("Grand Opening Advertising"). Franchisor shall determine and specify an appropriate minimum amount which Franchisee shall be required to expend on Grand Opening Advertising based upon Franchisor's general assessment of the area surrounding the Franchised Restaurant and taking into account other potentially relevant factors, such as prevailing costs of advertising in the area, the time of year of opening and other similar factors. Further, Franchisor shall specify the time at which Franchisee shall conduct Grand Opening Advertising. Prior to their use, all materials to be used in Grand Opening Advertising must be approved by Franchisor through the process set forth in Section 11.2.2. Grand Opening Advertising expenditures shall be in addition to any Local Advertising and Marketing Fund Contributions.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the Grand Opening Advertising expenditure is in addition to other advertising expenses. Specifically, franchisees are required to spend on local advertising and promotion for approximately three months following the restaurant's opening. The amount to be spent on Grand Opening Advertising will be determined by Monicals Pizza, based on factors such as the area's demographics and advertising costs.
This Grand Opening Advertising expenditure is separate from the ongoing Local Advertising and Marketing Fund Contributions that franchisees must also make. Franchisees are required to spend at least 2% of the previous month's gross sales on Local Advertising.
Therefore, a new Monicals Pizza franchisee should anticipate these three distinct advertising expenses: a one-time Grand Opening Advertising spend, ongoing Local Advertising expenses, and potential contributions to a Marketing Fund.