Is the cost of advertising and promotional materials from Floyds 99 passed on to the franchisee?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
9.1 Franchisor's Services. The Franchisor, or its designee, shall, during the Franchisee's operation of the FLOYD'S 99 Shop, make available to the Franchisee the following services:
- a. The Franchisor shall give the Franchisee access to advertising and promotional materials as may be developed by the Franchisor, the cost of which may be passed on to the Franchisee or charged to the National Marketing Fund (defined in Section 13.2 below), at the Franchisor's option.
13.3 Local Advertising.
Franchisee shall spend at least 1% of the total amount of its quarterly Gross Sales on local advertising (the "Local Advertising Allocation") to create public awareness of the Franchisee's FLOYD'S 99 Shop.
Franchisor has the right to require Franchisee to spend a minimum average per calendar quarter of up to 2% of Franchisee's total Gross Sales.
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.
13.5 Grand Opening Promotion. The Franchisor reserves the right to require the Franchisee to conduct a grand opening advertising and promotional program for the FLOYD'S 99 Shop at a time to be mutually agreed upon by the Franchisor and the Franchisee at or around the time that the Barbershop opens. The grand opening advertising and promotional program typically consists of up to sixty (60) days of promotions and advertising. All of the Franchisee's grand opening advertising and promotional materials shall be subject to the Franchisor's prior written approval. At the Franchisee's option, the grand opening campaign may include offering discounted services; if the Franchisee offers discounted services, the dollar value of discounted services will not be credited toward the amount the Franchisee is required to spend on its grand opening campaign (the current grand opening spending obligation is up to $25,000).
- 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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the cost of advertising and promotional materials may be passed on to the franchisee. Specifically, Floyds 99 will give franchisees access to advertising and promotional materials that they develop, and the cost of these materials may be passed on to the franchisee at Floyds 99's option. These costs may also be charged to the National Marketing Fund.
Floyds 99 franchisees are also required to spend a minimum of 1% of their quarterly Gross Sales on local advertising to promote their shop. Floyds 99, however, has the right to increase this minimum to 2% of the franchisee's total Gross Sales per calendar quarter. Funds spent on recruitment are not approved as local advertising.
Additionally, Floyds 99 reserves the right to require franchisees to conduct a grand opening advertising and promotional program for their shop. This program typically lasts up to 60 days. The franchisee's grand opening spending obligation is up to $25,000. All advertising and promotional materials used for the grand opening must receive prior written approval from Floyds 99.
Floyds 99 also has the option to create a regional advertising association (Co-op). If a Co-op is established in the franchisee's area, the franchisee will be required to participate in it for regional marketing and promotion programs.