When is the report on Local Advertising Allocation expenditures due from a Floyds 99 franchisee?

According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee must submit an accounting of their local advertising expenditures to the franchisor within 20 days following the end of each calendar quarter. This means Floyds 99 franchisees must track their local advertising spending and report it to the franchisor four times per year.

This requirement ensures that franchisees are actively promoting their individual Floyds 99 shop within their local market, as the franchisee must spend at least 1% of the total amount of its quarterly Gross Sales on local advertising. The franchisor also has the right to require a franchisee to spend a minimum average per calendar quarter of up to 2% of the franchisee's total Gross Sales. The report allows Floyds 99 to verify compliance with the local advertising spending requirement.

It is important to note that the funds spent on local advertising must be focused on promoting the franchisee's shop to consumers, and the franchisor retains the right to approve all written advertising and promotional materials before publication. Failure to meet the local advertising allocation requirements can lead to termination of the franchise agreement or, at the franchisor's discretion, the franchisor may purchase local advertising for the franchisee, and the franchisee will be obligated to reimburse the franchisor for all such purchases.