Does Floyds 99 have regional advertising programs?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4 Regional Advertising Programs.
The Franchisor reserves the right, upon 30 days prior written notice to the Franchisee, to create a regional advertising association ("Co-op") for the benefit of FLOYD'S 99 franchisees located within a particular geographic area.
If a Co-op is established for the area where the Franchisee is located, the Franchisee will be required to participate in the Co-op for the purpose of selecting and participating in regional marketing and promotion programs for FLOYD'S 99 Shops.
The Franchisee will be required to remain a member of and be bound by the decisions of the majority of the members of
the Co-op regarding expenditures, assessments and dues of the Co-op, to the extent that they are approved by the Franchisor. Franchisor may require Franchisee to allocate up to 2% of Gross Sales under Section 13.3 (Franchisee's maximum Local Advertising Allocation) as a required advertising contribution to the Co-op. Each Co-op has the right, by majority vote, to require its members to pay additional monthly dues to the Co-op. The failure of the Franchisee to participate in the Co-op or pay any dues required by the Coop, may, at the option of the Franchisor, be deemed to be a breach of this Agreement. The Franchisor has the right, in its sole discretion, to determine the composition of all geographic territories and market areas for the implementation of such regional advertising and promotion campaigns and to require that the Franchisee participate in such regional advertising programs as and when they may be established by the Franchisor. If a regional advertising program is implemented on behalf of a particular region by the Franchisor, the Franchisor, to the extent reasonably calculable, will only use contributions from FLOYD'S 99 franchisees within such region for the particular regional advertising program. The Franchisor reserves the right to seek reimbursement from the Co-op for reasonable administrative costs, salaries and overhead as the Franchisor may incur in activities related to the implementation and administration of the Co-op and marketing programs. The Franchisor also reserves the right to establish an advertising cooperative for a particular region to enable the cooperative to self-administer the regional advertising program; provided that the Franchisor shall have the right to review and approve the governing documents of such a selfadministering cooperative.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Floyds 99 reserves the right to create regional advertising associations, also known as "Co-ops", for franchisees within a specific geographic area. Floyds 99 must provide franchisees with 30 days prior written notice before establishing a Co-op.
If a Co-op is created in the franchisee's area, participation is mandatory. Franchisees are required to engage in regional marketing and promotion programs selected by the Co-op members. Franchisees must remain members and adhere to the decisions made by the majority of the Co-op members regarding the Co-op's expenditures, assessments, and dues, provided these are approved by Floyds 99.
Floyds 99 may require franchisees to allocate up to 2% of their Gross Sales, which represents the maximum Local Advertising Allocation, as a contribution to the Co-op. The Co-op can also require members to pay additional monthly dues, subject to a majority vote. Failure to participate in the Co-op or pay the required dues may be considered a breach of the franchise agreement at Floyds 99's discretion. Floyds 99 has the authority to define the geographic territories and market areas for these regional campaigns and can mandate franchisee participation in such programs. If a regional program is implemented, Floyds 99 will use contributions from franchisees within that region for the specific regional advertising program. Floyds 99 can seek reimbursement from the Co-op for administrative costs related to the Co-op's implementation and marketing programs and can also establish an advertising cooperative for a region, allowing it to self-administer the regional advertising program, subject to Floyds 99's review and approval of the cooperative's governing documents.