Does Floyds 99 give benefits to public figures for recommending the franchise in advertisements?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
to purchase local advertising on your behalf and require you to reimburse us if you fail to spend the minimum amount required.
National Marketing Contribution. You must remit to us a contribution ("National Marketing Contribution") to our national marketing fund of up to 3% of your Gross Sales. As of the date of this Disclosure Document, we collect a National Marketing Contribution of 1.5% of your Gross Sales. When combined with your Local Advertising Allocation, your total advertising obligation (your National Marketing Contribution plus Local Advertising Allocation) will not exceed 4% of your Gross Sales. The National Marketing Contribution is due to us along with your Royalty payment, payable weekly on the day of the week we periodically designate, based on the amount of Gross Sales in the previous week. We deposit the National Marketing Contributions collected from all FLOYD'S 99 Shops in a bank account separated from our operating account ("National Marketing Fund"). All affiliate-owned FLOYD'S 99 Shops pay into the National Marketing Fund on an equal percentage basis with all franchised FLOYD'S 99 Shops. If you request it in writing, we will send you an annual, unaudited financial statement for the National Marketing Fund which indicates how the National Marketing Fund has been spent during the previous calendar year. Because we do not have the Fund audited, audited financial statements are not available to franchisees.
We administer the National Marketing Fund in our sole discretion. The National Marketing Fund proceeds may be used for the implementation and administration of the National Marketing Fund, including the creation, production and placement of commercial advertising, agency costs and commissions, creation and production of video, audio, and written advertisements, including direct mail, radio and other media advertising and employing advertising agencies and in-house staff assistance, supporting public relations,
market research, brand recognition, point-of-purchase materials, third-party shopping services, gift card and stored value card programs, customer loyalty programs, sponsoring proprietary in-store music streaming programs, employee incentives and retention programs, training programs, Internet advertising, marketing through social media, website design and maintenance, electronic mail communication, and other advertising and marketing activities. We do not spend any of the National Marketing Fund on soliciting franchisees.
Source: Item 18 — PUBLIC FIGURES (FDD page 49)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Floyds 99 utilizes a National Marketing Fund, which franchisees contribute to via a percentage of their gross sales. The franchisor has sole discretion over how these funds are spent. These funds can be used for various marketing and advertising activities, including the creation and placement of commercials, public relations, market research, and other advertising efforts. Floyds 99 may use outside advertising agencies and personnel and in-house personnel to create local and regional advertising, including ad slicks, radio spots, direct mail, billboards and other marketing pieces and programs.
However, the FDD does not explicitly state whether Floyds 99 provides specific benefits or compensation to public figures for endorsements or recommendations in advertisements. The document outlines the broad uses of the National Marketing Fund but does not detail specific strategies like celebrity endorsements.
A prospective franchisee should directly ask the franchisor for clarification on whether the National Marketing Fund has been or could be used to pay public figures for endorsements. Understanding the franchisor's approach to advertising and celebrity endorsements can help a franchisee assess the potential marketing strategies and effectiveness of the Floyds 99 system.