Does Monicals Pizza guarantee that any particular franchisee will benefit directly from the placement of advertising by the marketing fund?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 20–27)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza does not guarantee that any specific franchisee will directly benefit, or benefit in proportion to their contribution, from advertising placed by the system-wide marketing fund. This means that while franchisees are required to contribute to the marketing fund, there's no assurance that the advertising efforts will specifically target or improve the business of their individual Monicals Pizza location.
Monicals Pizza maintains control over the creative concepts, materials, media, placement, and allocation of advertisements funded by the marketing fund. This gives Monicals Pizza the authority to decide how and where the marketing funds are spent, without necessarily considering the individual needs or locations of each franchisee. The advertising may include print, television, radio, Internet, or other media, and Monicals Pizza is responsible for determining the best use of these channels.
This policy is fairly common in franchising, where marketing funds are often used for broad, system-wide campaigns designed to benefit the brand as a whole. While individual franchisees may not see a direct and measurable return on their contributions, the intention is that the overall brand awareness and reputation will improve, indirectly benefiting all locations. Prospective Monicals Pizza franchisees should consider this when evaluating the costs and potential benefits of the franchise, understanding that marketing contributions do not guarantee localized advertising or direct increases in their restaurant's sales.