What article of the Floyds 99 Franchise Agreement details advertising obligations?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Funds spent on local advertising must be focused on the promotion of Franchisee's 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.
When combined with Franchisee's National Marketing Contribution (described above in Section 13.2), Franchisee's total advertising obligation (the National Marketing Contribution plus Local Advertising Allocation) will not exceed 4% of Franchisee's Gross Sales.
The Franchisee will submit to the Franchisor an accounting of the amounts spent on local advertising within 20 days following the end of each calendar quarter.
If the Franchisee's lease requires it to advertise locally, the Franchisor may, in its sole discretion, count such expenditures toward the Franchisee's Local Advertising Allocation under this Section 13.3.
The Franchisee shall obtain the Franchisor's prior written approval of all written advertising and promotional materials before publication.
If the Franchisee fails to spend the Local Advertising Allocation, this Agreement will be subject to termination under Section 20.2 below or, in the Franchisor's sole discretion, the Franchisor may purchase local advertising for the Franchisee and the Franchisee will be obligated to reimburse the Franchisor for all such purchases.
- 13.4 Regional Advertising Programs.
The Franchisor reserves the right, upon 30 days prior written notice to the Franchisee, to create a regional advertising association ("Co-op") for the benefit of FLOYD'S 99 franchisees located within a particular geographic area.
If a Co-op is established for the area where the Franchisee is located, the Franchisee will be required to participate in the Co-op for the purpose of selecting and participating in regional marketing and promotion programs for FLOYD'S 99 Shops.
The Franchisee will be required to remain a member of and be bound by the decisions of the majority of the members of
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 29–30)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Section 13 of the Franchise Agreement outlines the franchisee's advertising obligations. Specifically, Section 13.3 details local advertising allocation, stating that funds spent must focus on promoting the franchisee's shop to consumers and that certain sites like Indeed or Craigslist are not approved for local advertising. The franchisee's total advertising obligation, combining the National Marketing Contribution and Local Advertising Allocation, will not exceed 4% of the franchisee's gross sales.
Furthermore, franchisees must submit an accounting of local advertising expenditures to Floyds 99 within 20 days after each calendar quarter. If a franchisee's lease requires local advertising, Floyds 99 may count those expenditures toward the Local Advertising Allocation. All written advertising and promotional materials require Floyds 99's prior written approval. Failure to spend the Local Advertising Allocation may result in termination of the agreement or Floyds 99 purchasing local advertising for the franchisee, who would then be obligated to reimburse Floyds 99.
Section 13.4 also addresses regional advertising programs, allowing Floyds 99 to create a regional advertising association (Co-op) with 30 days' notice. If a Co-op is established in the franchisee's area, participation is mandatory for regional marketing and promotion programs. Franchisees are required to remain members and adhere to the decisions made by the majority of the Co-op members.