Can Floyds 99 change the amount of the National Marketing Contribution?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ance with all of the Franchisor's standards and specifications. The Franchisee acknowledges and agrees that participation in a gift card or customer loyalty card program, whether voluntary or required, may require the Franchisee to pay fees, enter into agreements or purchase equipment or other products or services from the Franchisor or from a designated third-party supplier.
13.2 National Marketing Contribution. The Franchisee shall make contributions ("National Marketing Contributions") to a national advertising fund established by the Franchisor ("National Marketing Fund"). The amount of the National Marketing Contribution is currently 1.5% of Franchisee's Gross Sales and can be changed by Franchisor from time to time. The National Marketing Contribution
shall be paid to the Franchisor in addition to Royalties and in addition to any amounts spent on local or regional advertising, and the following terms and conditions shall apply:
- a. The National Marketing Contribution shall be payable concurrently with (or on another designated Due Date), and in the same manner as, the payment of the Royalties as described in Section 12.3.
- b. When combined with Franchisee's Local Advertising Allocation (described below in Section 13.3), Franchisee's total advertising obligation (the National Marketing Contribution plus Local Advertising Allocation) will not exceed 4% of Franchisee's Gross Sales.
- c.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the amount of the National Marketing Contribution can be changed by Floyds 99 from time to time. Currently, the National Marketing Contribution is 1.5% of the franchisee's Gross Sales.
However, Floyds 99 can increase the National Marketing Contribution up to a maximum of 3% of Gross Sales. Floyds 99 must provide the franchisee with at least 90 days' prior written notice before increasing the contribution amount.
The National Marketing Contribution is paid in addition to Royalties and any amounts spent on local or regional advertising. The franchisee's total advertising obligation, which includes both the National Marketing Contribution and the Local Advertising Allocation, will not exceed 4% of the franchisee's Gross Sales.
Floyds 99 also has the right to verify National Marketing Contribution payments from time to time as it deems necessary. Upon the franchisee's request, Floyds 99 will provide an unaudited financial statement within 120 days after the end of each fiscal year, indicating how the National Marketing Fund has been spent.