Does Floyds 99 require franchisees to obtain approval for promotional programs?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
tedness to Franchisor for Royalties, National Marketing Contributions, product purchases from the Franchisor or its affiliates, interest or any other indebtedness. The Franchisee acknowledges that the Franchisor has the right to set-off any amounts the Franchisee may owe to the Franchisor against any amounts the Franchisor might owe to the Franchisee.
13. ADVERTISING
13.1 Approval of Advertising. The Franchisee shall obtain the Franchisor's prior written approval of all written advertising or other marketing or promotional programs regarding the FLOYD'S 99 Shop, including, without limitation, "Yellow Pages" and other directory listing advertising, newspaper ads, flyers, brochures, magazines, coupons, direct mail pieces, specialty and novelty items and radio, television. See Section 13.6 below regarding electronic advertising. The Franchisee shall also obtain the Franchisor's prior written approval before using any promotional materials as may be provided by vendors. The proposed written advertising or a description of the marketing or promotional program shall be submitted to the Franchisor at least 30 days prior to publication, broadcast or use. The Franchisee acknowledges that advertising and promoting the FLOYD'S 99 Shop in accordance with the Franchisor's standards and specifications is an essential aspect of the Licensed Methods, and the Franchisee agrees to comply with all advertising standards and specifications. The Franchisee shall display all required promotional materials, signs, point of purchase displays and other marketing materials in its FLOYD'S 99 Shop and in the manner prescribed by the Franchisor. The Franchisee agrees to participate in any mandatory gift card or customer loyalty card programs implemented by the Franchisor in accordance with all of the Franchisor's standards and specifications. The Franchisee acknowledges and agrees that participation in a gift card or customer loyalty card program, whether voluntary or required, may require the Franchisee to pay fees, enter into agreements or purchase equipment or other products or services from the Franchisor or from a designated third-party supplier.
13.2 National Marketing Contribution. The Franchisee shall make contributions ("National Marketing Contributions") to a national advertising fund established by the Franchisor ("National Marketing Fund"). The amount of the National Marketing Contribution is currently 1.5% of Franchisee's Gross Sales and can be changed by Franchisor from time to time. The National Marketing Contribution
shall be paid to the Franchisor in addition to Royalties and in addition to any amounts spent on local or regional advertising, and the following terms and conditions shall apply:
- a. The National Marketing Contribution shall be payable concurrently with (or on another designated Due Date), and in the same manner as, the payment of the Royalties as described in Section 12.3.
- b. When combined with Franchisee's Local Advertising Allocation (described below in Section 13.3), Franchisee's total advertising obligation (the National Marketing Contribution plus Local Advertising Allocation) will not exceed 4% of Franchisee's Gross Sales.
- c.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from the franchisor for all marketing and promotional programs. This includes various forms of advertising such as "Yellow Pages" listings, newspaper ads, flyers, brochures, magazines, coupons, direct mail, specialty items, and radio and television advertisements. Floyds 99 also requires franchisees to get approval before using any promotional materials provided by vendors. Franchisees must submit their proposed advertising or a description of their marketing or promotional program to Floyds 99 at least 30 days before its intended use.
Floyds 99 emphasizes that adhering to the franchisor's advertising standards is crucial for maintaining the integrity of the Licensed Methods. Franchisees are also required to display all promotional materials, signs, and point-of-purchase displays as directed by Floyds 99. Additionally, franchisees must participate in any mandatory gift card or customer loyalty card programs implemented by the franchisor, which may involve fees or the purchase of equipment or services from Floyds 99 or designated third-party suppliers.
Furthermore, Floyds 99 reserves the right to mandate a grand opening advertising and promotional program for the barbershop, typically consisting of up to 60 days of promotions and advertising. All grand opening advertising and promotional materials are subject to the franchisor's prior written approval. While franchisees have the option to offer discounted services during the grand opening, the dollar value of these discounts will not count towards the required grand opening spending, which can be up to $25,000. This ensures that all promotional activities align with the brand's standards and marketing strategies.