What is the purpose of the National Marketing Fund administered by Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
We administer the National Marketing Fund in our sole discretion. The National Marketing Fund proceeds may be used for the implementation and administration of the National Marketing Fund, including the creation, production and placement of commercial advertising, agency costs and commissions, creation and production of video, audio, and written advertisements, including direct mail, radio and other media advertising and employing advertising agencies and in-house staff assistance, supporting public relations,
market research, brand recognition, point-of-purchase materials, third-party shopping services, gift card and stored value card programs, customer loyalty programs, sponsoring proprietary in-store music streaming programs, employee incentives and retention programs, training programs, Internet advertising, marketing through social media, website design and maintenance, electronic mail communication, and other advertising and marketing activities. We do not spend any of the National Marketing Fund on soliciting franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the National Marketing Fund is used for various advertising and marketing activities to benefit the Floyds 99 brand. Franchisees are required to contribute up to 3% of their gross sales to this fund, with the current contribution set at 1.5% of gross sales. These contributions are deposited into a separate bank account and all affiliate-owned Floyds 99 shops contribute on an equal percentage basis with franchised locations.
The funds are used at Floyds 99's discretion for the implementation and administration of marketing initiatives. These initiatives include creating and placing commercial advertising across various media, covering agency costs and commissions, producing video, audio, and written advertisements, supporting public relations, conducting market research, enhancing brand recognition, developing point-of-purchase materials, managing third-party shopping services, and running gift card and customer loyalty programs. The fund also supports in-store music streaming, employee incentives, training programs, internet advertising, social media marketing, website design and maintenance, and electronic mail communication.
Floyds 99 may also use the National Marketing Fund to reimburse itself for administrative costs, salaries, and overhead expenses related to the fund's implementation and marketing programs. The document specifies that Floyds 99 is not obligated to ensure that advertising expenditures directly benefit each franchisee proportionally and clarifies that the fund is not a trust fund, thus they do not owe a fiduciary duty to franchisees regarding the fund's management. Floyds 99 can spend more or less than the aggregate contributions in any fiscal year, borrow funds to cover deficits, or invest surplus funds for future use. Any remaining funds at year-end are carried over to the next year's expenses.
It is important to note that Floyds 99 reserves the right to terminate the National Marketing Fund with 30 days' notice to franchisees, and upon termination, any remaining monies will be distributed pro rata based on contributions made by all Floyds 99 shops within the preceding 12 months. Franchisees can request an annual, unaudited financial statement of the National Marketing Fund to see how the funds were spent during the previous calendar year.