How often is the National Marketing Contribution payable for a Floyds 99 franchise?
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 payable on the same schedule as royalties. Specifically, it is due on the day of the week that Floyds 99 periodically designates, and the amount is based on the prior week's Gross Sales. This means franchisees must calculate and remit this contribution weekly, aligning with their royalty payments. The National Marketing Contribution is paid via electronic transfer of funds, separate from the royalty transfer.
The National Marketing Contribution is currently set at 1.5% of Gross Sales, but Floyds 99 retains the right to increase this up to a maximum of 3.0% of Gross Sales. They must provide franchisees with 90 days' prior written notice before implementing any such increase. The combination of the National Marketing Contribution and the Local Advertising Allocation will not exceed a total of 4% of Gross Sales.
Prospective franchisees should note that certain franchisees who signed agreements before the date of the 2025 Disclosure Document may have a different National Marketing Contribution requirement of 1% of Gross Sales. This highlights the importance of reviewing the specific terms of your Franchise Agreement. The funds collected through the National Marketing Contribution are primarily used for advertising and marketing efforts benefiting all Floyds 99 Barbershops, including both franchised and affiliate-owned locations.