What is the purpose of the accounting of local advertising expenditures submitted by a Floyds 99 franchisee?

Based on the 2025 Floyds 99 Franchise Disclosure Document, franchisees must purchase local advertising separately through local marketing and media sources, making local advertising primarily their responsibility. While the FDD outlines the franchisee's responsibility for local advertising, it does not explicitly state the purpose for submitting an accounting of these local advertising expenditures to Floyds 99.

However, the FDD does state that Floyds 99 may form a regional advertising association (Co-op), requiring franchisees to contribute up to 2% of their gross sales into the Co-op. If a Co-op is formed, the franchisee is bound by the decisions of the majority regarding expenditures, assessments, and dues, subject to Floyds 99's approval. The FDD also mentions that Floyds 99 reviews for approval any local or regional advertising proposed by the franchisee.

Given this information, it is likely that the accounting of local advertising expenditures is required to ensure franchisees are meeting their local advertising obligations, to monitor compliance with approved advertising materials, and to potentially inform decisions related to Co-op contributions and expenditures if a Co-op is established. A prospective franchisee should clarify with Floyds 99 the specific reporting requirements and how this accounting is used in practice.