How is the Floyds 99 National Marketing Contribution payable?
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. The National Marketing Contribution shall be payable concurrently with (or on another designated Due Date), and in the same manner as, the payment of the Royalties as described in Section 12.3.
- b. When combined with Franchisee's Local Advertising Allocation (described below in Section 13.3), Franchisee's total advertising obligation (the National Marketing Contribution plus Local Advertising Allocation) will not exceed 4% of Franchisee's Gross Sales.
- c.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees are required to make contributions to the National Marketing Fund. Currently, the National Marketing Contribution is 1.5% of the franchisee's Gross Sales, but this percentage can be adjusted by Floyds 99. This contribution is in addition to royalties and any local or regional advertising expenses.
The National Marketing Contribution is payable concurrently with, or on another designated due date, and in the same manner as the royalty payments, as detailed in Section 12.3 of the FDD. Floyds 99 retains the right to verify these National Marketing Contribution payments as deemed necessary, using any reasonable method.
Late payments of the National Marketing Contribution are subject to the same late charges and interest as royalty payments, as outlined in Section 12.3. However, Floyds 99 has the discretion to apply any payments made by the franchisee to any past due debts, including royalties, National Marketing Contributions, or product purchases. Upon request, Floyds 99 will provide franchisees with an unaudited financial statement within 120 days after the end of each fiscal year, detailing how the National Marketing Fund has been spent.