For what purposes may the National Marketing Fund proceeds be used 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.
We may reimburse ourselves from the National Marketing Fund for administrative costs, salaries and overhead expenses related to the implementation and administration of the National Marketing Fund and its marketing programs, including conducting market research, preparing material and collecting and accounting for National Marketing Contributions. In any fiscal year we may spend an amount greater or less than the aggregate contribution of all FLOYD'S 99 Shops to the National Marketing Fund in that year. The National Marketing Fund may borrow from us or other lenders to cover deficits or cause the National Marketing Fund to invest any surplus for future use. Any amounts remaining in the National Marketing Fund at the end of each year accrue and we apply them toward the next year's expenses. We do not guarantee that advertising expenditures from the National Marketing Fund will benefit you or any other franchisee directly or on a pro rata basis. The National Marketing Fund is not a trust fund, and we do not owe a fiduciary duty to you with respect to the maintenance, direction or administration of the National Marketing Fund. We assume no other direct or indirect liability or obligation to you for collecting amounts due to any advertising account or for maintaining, directing or administering any advertising account. We are not required to conduct advertising for the FLOYD'S 99 franchise system and reserve the right to terminate the National Marketing Fund upon 30 days prior written notice to all franchisees. Upon termination of the National Marketing Fund, any remaining monies will be distributed pro rata based on all FLOYD'S 99 Shops' contributions within the preceding 12 months.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to the 2025 FDD, Floyds 99 has discretion over how the National Marketing Fund is administered. The proceeds from the National Marketing Fund may be used for various marketing and administrative activities. These activities include implementing and administering the fund itself, creating and placing commercial advertisements, covering agency costs and commissions, and producing video, audio, and written advertisements for different media, such as direct mail and radio.
Floyds 99 may also use the funds to employ advertising agencies and in-house staff, support public relations, conduct market research, enhance brand recognition, and develop point-of-purchase materials. Additional uses include supporting third-party shopping services, gift card and stored value card programs, customer loyalty programs, in-store music streaming, employee incentives and retention programs, and training programs. The funds can also be allocated to Internet advertising, social media marketing, website design and maintenance, and electronic mail communication.
Floyds 99 can reimburse itself from the National Marketing Fund for administrative costs, salaries, and overhead expenses related to the implementation and administration of the fund and its marketing programs. This includes conducting market research, preparing materials, and managing the collection and accounting of National Marketing Contributions. The FDD specifies that Floyds 99 does not use any of the National Marketing Fund to solicit franchisees. The fund is not a trust fund, and Floyds 99 does not owe a fiduciary duty to franchisees regarding its maintenance, direction, or administration.