Approximately how much must a Floyds 99 franchisee spend on the grand opening promotional advertising campaign?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
oposed transferees of your franchise business for approval. (Section 18.3 of the Franchise Agreement and Sections 8.2 and 8.3 of the Development Agreement)
Advertising and Promotion.
Initial Advertising and Follow-Up Local Advertising. FFL and you will design the grand opening promotional advertising campaign, to be conducted at or around the time your Barbershop opens for business. You will spend approximately $25,000 (paid to third-party vendors) for the grand opening promotion. Your grand opening promotion will typically consist of up to 60 days of promotions and advertising mutually planned by you and FFL. At your option, the grand opening promotion may include discounts, such as $5.00 off a service and half-price haircuts. The dollar amount of discounts offered to clients does not count toward your grand opening expenses. After the grand opening campaign, you must spend a minimum average per calendar quarter of at least 1% of your total Gross Sales during such calendar quarter on local advertising that has been pre-approved by us (your "Local Advertising Allocation"). We have the right to require that you spend a minimum average per calendar quarter of up to 2% of your total Gross Sales. When combined with your National Marketing Contribution, your total advertising obligation (your National Marketing Contribution plus Local Advertising Allocation) will not exceed 4% of your Gross Sales. Funds spent on local advertising must be focused on the promotion of your Shop to consumers. Funds spent through sites or networks such as Indeed, Craigslist or other similar sites or professional networks, whether to recruit employees or for other purposes, are not approved as local advertising. If a regional Co-op is formed, we may require that all or a portion of your Local Advertising Allocation is reallocated to the regional Co-op. An accounting of your local advertising expenditures is submitted to us as part of your required financial reporting, showing how you spent the Local Advertising Allocation, averaged over that calendar quarter, for local advertising
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, franchisees are expected to invest around $25,000 in their grand opening promotional advertising campaign. This amount is paid directly to third-party vendors. Floyds 99 and the franchisee will collaborate on designing this campaign, which typically spans up to 60 days.
The grand opening promotion may incorporate discounts, such as $5.00 off a service or half-price haircuts. However, the monetary value of these discounts offered to clients does not count towards the franchisee's $25,000 grand opening expenses. This means the franchisee's actual out-of-pocket spending must be at least $25,000, regardless of any discounts offered to customers.
After the initial grand opening campaign, franchisees must continue to allocate a minimum average of 1% of their total Gross Sales per calendar quarter towards local advertising, which must be pre-approved by Floyds 99. Floyds 99 retains the right to increase this requirement up to 2% of total Gross Sales. The FDD specifies that the combined total advertising obligation, including both the Local Advertising Allocation and the National Marketing Contribution, will not exceed 4% of Gross Sales. Funds spent on local advertising must be focused on promoting the shop to consumers and cannot be used for recruitment or similar purposes.