use of marketing and advertising funds
Since most, if not all, franchisees pay into the national advertising fund or marketing fund as required by their franchise agreement, this issue should have broad application.
In any given franchise organization, can some units be denied advertising or marketing materials that are being paid for from monthly franchisee contributions?
Example: the (ficticious) Pink Pickle Promise marketing program is being implemented by the Home Office. Some stores choose not to participate because they already have a program in place that does the same thing. Participating in the Pink Pickle Promise will cost franchisees an additional charge, per unit sold. The Home Office plans to spend big$$ promoting the program, listing participating units in media, etc.
My gut tells me that since every franchisee pays the mandatory monthly fees, they cannot be denied the promotional materials.
Any legal opinions?