What happens if a Floyds 99 franchisee fails to spend the Local Advertising Allocation?

According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee fails to spend their Local Advertising Allocation, two things can happen. First, the franchise agreement can be terminated under Section 20.2. Alternatively, Floyds 99 has the option to purchase local advertising on behalf of the franchisee, and the franchisee would then be obligated to reimburse Floyds 99 for the full cost of these advertising purchases.

This policy ensures that franchisees actively promote their Floyds 99 shops within their local markets. The Local Advertising Allocation is a percentage of gross sales that must be spent on approved local advertising efforts. By mandating these expenditures, Floyds 99 aims to maintain brand visibility and attract customers to each location.

For a prospective franchisee, this means carefully budgeting for local advertising and diligently tracking expenditures to meet the required allocation. Failure to do so could lead to financial repercussions or even termination of the franchise agreement. It is important to maintain detailed records of all local advertising expenses and to obtain prior written approval from Floyds 99 for all advertising materials to ensure compliance with the franchise agreement.