factual

What is the focus of funds spent on local advertising for a Floyds 99 Shop?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

group of franchisees. As of the date of this disclosure document, there is no advertising council composed of franchisees which advises us on advertising policies. You must purchase local advertising separately through local marketing and media sources within a geographical area. Local advertising is primarily your responsibility.

You may create your own advertising and promotion materials; however, all advertising and promotion by you must be in such media and of such type and format as we may approve, must be conducted in a dignified manner and must conform to the standards and requirements as we may specify. You may not use any advertising or promotional plans, discounts, coupons, or other materials unless and until you have received written approval from us.

During our last fiscal year, National Marketing Fund expenditures were as follows:

| Expenditure Item | 2024 Percentage of Total | |---|---| | Brand Awareness/Search Engine Optimization | 55% | | Content Production | 15% | | CRM Management | 14% | | Digital Tools | 12% | | Floyds Radio | 4% | | Total | 100% | Regional Advertising Association.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)

What This Means (2025 FDD)

According to Floyds 99's 2025 Franchise Disclosure Document, local advertising is primarily the franchisee's responsibility. While Floyds 99 may provide access to advertising and promotional materials, franchisees are expected to purchase local advertising through local marketing and media sources.

Floyds 99 requires that franchisees receive written approval from them before using any advertising or promotional materials. This ensures that all advertising aligns with the brand's standards and requirements. Franchisees must conduct their advertising in a dignified manner and adhere to the specifications set by Floyds 99.

In addition to local advertising, Floyds 99 may create a regional advertising association (Co-op), requiring franchisees to contribute up to 2% of their gross sales to the Co-op instead of spending it on their own local advertising. The Co-op's advertising materials also require approval from Floyds 99. The grand opening promotional advertising campaign will be designed by both FFL and the franchisee, with the franchisee spending approximately $25,000 on this campaign, which typically lasts up to 60 days.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.