Is the Floyds 99 National Marketing Contribution paid in addition to Royalties?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ance with all of the Franchisor's standards and specifications. The Franchisee acknowledges and agrees that participation in a gift card or customer loyalty card program, whether voluntary or required, may require the Franchisee to pay fees, enter into agreements or purchase equipment or other products or services from the Franchisor or from a designated third-party supplier.
13.2 National Marketing Contribution. The Franchisee shall make contributions ("National Marketing Contributions") to a national advertising fund established by the Franchisor ("National Marketing Fund"). The amount of the National Marketing Contribution is currently 1.5% of Franchisee's Gross Sales and can be changed by Franchisor from time to time. The National Marketing Contribution
shall be paid to the Franchisor in addition to Royalties and in addition to any amounts spent on local or regional advertising, and the following terms and conditions shall apply:
- a.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the National Marketing Contribution is indeed paid in addition to the weekly royalty fee. The National Marketing Contribution is currently 1.5% of the franchisee's gross sales.
This contribution goes towards a national advertising fund established by Floyds 99, and the amount can be adjusted over time by the company. However, Floyds 99 will provide franchisees with at least 90 days' prior written notice before increasing the contribution, with a maximum of 3% of gross sales.
Furthermore, the National Marketing Contribution is in addition to any amounts spent on local or regional advertising. The document also states that when combined with the franchisee's Local Advertising Allocation, the total advertising obligation will not exceed 4% of the franchisee's gross sales. This means that while franchisees must contribute to both national and local advertising efforts, there is a cap on the total percentage of gross sales allocated to advertising.