Does Monicals Pizza provide general marketing guidelines to franchisees?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Each month, you must spend at least 2% of the previous month's gross sales on advertising, promotions and public relations in the local area surrounding the franchised restaurant. You will pay for your ads and promotions directly, but we will provide you with general marketing guidelines and we will review and approve your advertisements. 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;
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 provide general marketing guidelines to franchisees. The FDD states that franchisees must spend at least 2% of the previous month's gross sales on local advertising, promotions, and public relations. While franchisees pay for their own ads and promotions directly, Monicals Pizza will provide general marketing guidelines and review and approve franchisee advertisements.
Monicals Pizza may also develop a System-wide marketing fund, to which franchisees must contribute a percentage to be determined by Monicals Pizza. The funds will be used for various advertising and promotional activities, including print, television, radio, and Internet media. Monicals Pizza controls the creative concepts, materials, media, placement, and allocation of advertisements. The FDD specifies that Monicals Pizza will maintain contributions in a separate account and will not use them for general operating expenses, except for reasonable administrative costs.
Monicals Pizza retains the sole right to market on the Internet, including the use of websites, domain names, and search engine optimization techniques. Franchisees are restricted from establishing a presence on the Internet or marketing using the Internet or by cellphone in connection with the franchised restaurant except under a Franchisor designated program or with prior written consent. However, franchisees may market using the internet in connection with the franchised restaurant for the purpose of collecting e-mail addresses and cellphone numbers from guests of their restaurants for use in future e-mail and text marketing activities. Monicals Pizza also retains the sole right to use the Marks on the Internet, including on websites, as domain names, directory addresses, on-line identifiers, search terms and meta-tags, and in connection with linking, marketing, co-branding and other arrangements.