When is the Flowerama Marketing Fund payment due each month?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
As of the date of this Disclosure Document, we have not established a separate Flowerama Marketing Fund (the "Flowerama Marketing Fund"), but we reserve the right to do so at any time in the future upon 90 days' written notice to you. When the Flowerama Marketing Fund is implemented, company-owned and affiliate-owned Standard Flowerama Centers will make contributions to the Flowerama Marketing Fund equal to the amounts required of comparable Centers for each of our or our subsidiaries' or affiliates' companyowned units operating in any market or region in which there are 5 or more Standard Flowerama Centers in operation. If a Flowerama Marketing Fund is established, all franchisees will be uniformly required to pay to us on or before the 10th day of each calendar month an amount equal to 2% of their Gross Sales for the preceding calendar month. (Franchise Agreement - Section 22 B).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 38–52)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, if a Flowerama Marketing Fund is established, franchisees must pay 2% of their gross sales for the preceding calendar month on or before the 10th day of each calendar month.
This means that if the Flowerama Marketing Fund is implemented, a franchisee's payment for the prior month's gross sales would be due by the 10th of the current month. For example, sales from January would need to be reported and the associated marketing fund payment made by February 10th.
It is important to note that as of the date of the 2024 Disclosure Document, Flowerama has not established a separate Flowerama Marketing Fund, but they reserve the right to do so in the future with 90 days' written notice. Therefore, this payment schedule would only apply if and when Flowerama decides to implement the marketing fund.