Is Floyds 99 required to develop advertising and promotional materials for franchisees?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
During the operation of your FLOYD'S 99 Shop, we or our designee will:
- Provide you access to advertising and promotional materials that we may, but are not required to, develop.
We may, at our option, pass the cost of the advertising and promotional materials that you use on to you or charge the National Marketing Fund. (Section 9.1(a) of the Franchise Agreement)
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, Floyds 99 is not required to develop advertising and promotional materials for franchisees. However, Floyds 99 may provide franchisees access to advertising and promotional materials that they may develop.
Floyds 99 administers a National Marketing Fund, into which franchisees must contribute up to 3% of their gross sales. As of the date of the FDD, the contribution is 1.5% of gross sales. These funds are used for marketing programs, including market research and preparing materials. However, Floyds 99 does not guarantee that these advertising expenditures will directly benefit each franchisee.
Floyds 99 also reviews local or regional advertising proposed by franchisees for approval. Franchisees are responsible for purchasing local advertising, but all advertising and promotional materials must be approved by Floyds 99 and conform to their standards. Floyds 99 may use outside advertising agencies and in-house personnel to create local and regional advertising.