What must a Floyds 99 franchisee report on regarding Local Advertising Allocation expenditures?

According to Floyds 99's 2025 Franchise Disclosure Document, a franchisee must submit an accounting of the amounts spent on local advertising to the franchisor. This report is due within 20 days following the end of each calendar quarter.

This requirement ensures that franchisees are actively promoting their individual Floyds 99 shops within their local markets, as the Local Advertising Allocation must be used to create public awareness. The franchisor maintains oversight of these local advertising efforts and requires franchisees to obtain prior written approval for all written advertising and promotional materials before they are published.

This accounting allows Floyds 99 to verify that franchisees are meeting their local advertising obligations, which are a percentage of gross sales. If a franchisee fails to adequately spend their Local Advertising Allocation, it could lead to termination of the franchise agreement or the franchisor purchasing local advertising on the franchisee's behalf, with the franchisee obligated to reimburse the franchisor for these costs. This system ensures brand consistency and adequate local promotion across all Floyds 99 locations.

It is important to note that funds spent on recruiting employees through sites like Indeed or Craigslist are not considered approved local advertising expenses. This restriction ensures that advertising funds are used specifically for promoting the Floyds 99 shop to consumers, rather than for internal operational needs.