Who administers the National Marketing Fund for Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
We administer the National Marketing Fund in our sole discretion. The National Marketing Fund proceeds may be used for the implementation and administration of the National Marketing Fund, including the creation, production and placement of commercial advertising, agency costs and commissions, creation and production of video, audio, and written advertisements, including direct mail, radio and other media advertising and employing advertising agencies and in-house staff assistance, supporting public relations,
market research, brand recognition, point-of-purchase materials, third-party shopping services, gift card and stored value card programs, customer loyalty programs, sponsoring proprietary in-store music streaming programs, employee incentives and retention programs, training programs, Internet advertising, marketing through social media, website design and maintenance, electronic mail communication, and other advertising and marketing activities. We do not spend any of the National Marketing Fund on soliciting franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the National Marketing Fund is administered by Floyds 99 in its sole discretion. The document specifies that the proceeds from this fund may be used for various marketing and administrative activities. These activities include creating and placing advertisements, covering agency costs and commissions, producing video, audio, and written advertisements, supporting public relations, conducting market research, enhancing brand recognition, developing point-of-purchase materials, managing gift card and customer loyalty programs, sponsoring in-store music streaming, and implementing employee incentives and training programs. The fund also supports internet advertising, social media marketing, website design and maintenance, and electronic mail communication.
Floyds 99 may also use the National Marketing Fund to reimburse itself for administrative costs, salaries, and overhead expenses related to the fund's implementation and administration, including market research and the collection of contributions. The amount spent in any fiscal year may be more or less than the total contributions from all Floyds 99 shops. The fund can borrow to cover deficits or invest surpluses for future use, with any remaining amounts at year-end being carried over to the next year's expenses.
The FDD clarifies that Floyds 99 does not guarantee that advertising expenditures from the National Marketing Fund will directly benefit each franchisee on a pro rata basis. The fund is not a trust, and Floyds 99 does not owe a fiduciary duty to franchisees regarding its maintenance, direction, or administration. Floyds 99 can terminate the National Marketing Fund with 30 days' written notice, and upon termination, any remaining monies will be distributed pro rata based on each shop's contributions over the preceding 12 months. This arrangement gives Floyds 99 significant control over the marketing fund, while franchisees have limited direct influence over how the funds are spent.