Can Floyds 99 increase the National Marketing Contribution?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
all FLOYD'S 99 Barbershops unless otherwise specified.
ITEM 6. OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty1 | 6% of Gross Sales | Payable on the day of the week we periodically designate, based on prior week's Gross Sales | Gross Sales include all revenue from the Barbershop, including sales made away from the Barbershop premises. Gross Sales do not include sales taxes and discounts that have been approved by us in advance. Royalties are paid by electronic transfer of funds. |
| National Marketing Contribution1 | Currently 1.5% of Gross Sales, but we can require (upon 90 days' notice to you) up to a maximum of 3.0% of Gross Sales. The combination of the National Marketing Contribution and Local Advertising Allocation will not exceed a total of 4% of Gross Sales. (See Royalty Remarks above for discussion of "Gross Sales") | Payable on the day of the week we periodically designate, based on prior week's Gross Sales | We currently collect a National Marketing Contribution equal to 1.5% of Gross Sales and reserve the right to increase this amount up to 3.0% of Gross Sales on 90 days' prior written notice to you. Contributions are used primarily for production of advertising and marketing for the Barbershops. See Item 11. Our affiliate-owned Barbershops contribute the same as franchisee-owned Barbershops. The National Marketing Contribution is paid by electronic transfer of funds separate from the royalty transfer. |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the company has the ability to increase the National Marketing Contribution fee under certain conditions. Currently, the National Marketing Contribution is 1.5% of Gross Sales. However, Floyds 99 reserves the right to increase this contribution up to a maximum of 3.0% of Gross Sales.
Floyds 99 must provide franchisees with 90 days' prior written notice before increasing the National Marketing Contribution. The funds collected from this contribution are primarily used for the production of advertising and marketing materials for the Floyds 99 Barbershops. It is important to note that the combined total of the National Marketing Contribution and the Local Advertising Allocation cannot exceed 4% of Gross Sales.
Notably, some franchisees who signed their Franchise Agreements before the date of the 2025 Disclosure Document have a National Marketing Contribution requirement of only 1% of Gross Sales. This means that the ability to raise the contribution and the maximum amount may vary based on the specific terms of older franchise agreements. All Floyds 99 Barbershops, whether affiliate-owned or franchisee-owned, contribute to the National Marketing Contribution on the same basis.