How is the National Marketing Contribution paid to Floyds 99?
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 National Marketing Contribution is currently 1.5% of Gross Sales, although Floyds 99 can increase it to a maximum of 3.0% of Gross Sales with 90 days' notice. This contribution, along with the Local Advertising Allocation, will not exceed 4% of Gross Sales. The Gross Sales calculation excludes sales taxes and discounts approved by Floyds 99 in advance.
The National Marketing Contribution is paid via electronic transfer of funds, separate from royalty payments. Floyds 99's affiliate-owned barbershops contribute to the National Marketing Fund at the same rate as franchisee-owned locations. Some franchisees who signed agreements before the date of the 2025 FDD have a National Marketing Contribution requirement of 1% of Gross Sales.
The funds collected through the National Marketing Contribution are primarily used for advertising and marketing efforts for Floyds 99 Barbershops. This contribution is payable on the same day of the week that Floyds 99 designates for royalty payments, and it is based on the prior week's Gross Sales. Prospective franchisees should be aware that this contribution can increase over time, impacting their overall expenses.