How does a Floyds 99 franchisee report their local advertising expenditures to the franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 must spend a minimum average of 1% of their total Gross Sales per calendar quarter on local advertising, although Floyds 99 has the right to require up to 2%. All local advertising must receive pre-approval from Floyds 99.
The FDD does not specify the exact method by which a franchisee reports these local advertising expenditures to Floyds 99. However, it does state that franchisees must get pre-approval for all local advertising, implying some form of communication and documentation is necessary for that approval process.
To gain a comprehensive understanding of the reporting process, a prospective Floyds 99 franchisee should ask the franchisor for clarification on the specific procedures and documentation required to report local advertising expenditures. This includes understanding the frequency of reporting, the format of reports, and any supporting documentation needed to demonstrate compliance with the local advertising spending requirements.