What are the requirements for local advertising for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ion shall be distributed to the Franchisor's franchisees in proportion to their respective contributions to the National Marketing Fund during the preceding 12-month period. The Franchisor shall have the right to reinstate the National Marketing Fund upon the same terms and conditions set forth herein upon 30 days' prior written notice to the Franchisee.
- 13.3 Local Advertising. Franchisee shall spend at least 1% of the total amount of its quarterly Gross Sales on local advertising (the "Local Advertising Allocation") to create public awareness of the Franchisee's FLOYD'S 99 Shop. Franchisor has the right to require Franchisee to spend a minimum average per calendar quarter of up to 2% of Franchisee's total Gross Sales. Funds spent on local advertising must be focused on the promotion of Franchisee's Shop to consumers. Funds spent through sites or networks such as Indeed, Craigslist or other similar sites or professional networks, whether to recruit employees or for other purposes, are not approved as local advertising. When combined with Franchisee's National Marketing Contribution (described above in Section 13.2), Franchisee's total advertising obligation (the National Marketing Contribution plus Local Advertising Allocation) will not exceed 4% of Franchisee's Gross Sales. The Franchisee will submit to the Franchisor an accounting of the amounts spent on local advertising within 20 days following the end of each calendar quarter. If the Franchisee's lease requires it to advertise locally, the Franchisor may, in its sole discretion, count such expenditures toward the Franchisee's Local Advertising Allocation under this Section 13.3. The Franchisee shall obtain the Franchisor's prior written approval of all written advertising and promotional materials before publication. If the Franchisee fails to spend the Local Advertising Allocation, this Agreement will be subject to termination under Section 20.2 below or, in the Franchisor's sole discretion, the Franchisor may purchase local advertising for the Franchisee and the Franchisee will be obligated to reimburse the Franchisor for all such purchases.
- 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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must spend at least 1% of their quarterly gross sales on local advertising, referred to as the "Local Advertising Allocation," to promote their shop. Floyds 99 has the right to increase this minimum to an average of up to 2% of the franchisee's total gross sales per calendar quarter. These funds must be used to promote the franchisee's shop to consumers, and expenditures on sites like Indeed or Craigslist for recruitment or other purposes do not qualify as local advertising.
Franchisees must obtain prior written approval from Floyds 99 for all written advertising and promotional materials before they are published. This includes "Yellow Pages" listings, newspaper ads, flyers, brochures, magazines, coupons, direct mail, and radio and television advertisements. Proposed advertising must be submitted to Floyds 99 at least 30 days before its intended use. Floyds 99 retains the exclusive right to develop and control the content of all Electronic Advertising for the shops, and franchisees must strictly adhere to Floyds 99's policies regarding electronic advertising if they are permitted to develop any.
Franchisees must provide an accounting of their local advertising expenditures to Floyds 99 within 20 days after each calendar quarter. If a franchisee's lease requires local advertising, Floyds 99 may count those expenditures toward the Local Advertising Allocation. If a franchisee fails to meet their Local Advertising Allocation requirements, their agreement may be terminated, or Floyds 99 may purchase local advertising on their behalf, for which the franchisee would be obligated to reimburse Floyds 99. The franchisee's total advertising obligation, including the National Marketing Contribution and Local Advertising Allocation, will not exceed 4% of the franchisee's gross sales.
Floyds 99 reserves the right to create a regional advertising association (Co-op) with 30 days' notice, requiring franchisees in that area to participate in regional marketing and promotion programs. Franchisees are bound by the decisions of the majority of the Co-op members. This structure ensures that local advertising efforts align with Floyds 99's broader marketing strategies and standards, while also allowing for regional customization and control by the franchisor.