Who retains the Local Advertising Allocation funds for a Floyds 99 franchise?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Advertising Allocation2 | 1% to 2% of Gross Sales The combination of the National Marketing Contribution and Local Advertising Allocation will not exceed a total of 4% of Gross Sales. | As incurred | The Local Advertising Allocation is in addition to the National Marketing Contribution, but is retained by you to advertise your Barbershop. This is the minimum average you must spend each calendar quarter, with a report of expenditures submitted as part of your required financial reporting to us. Funds spent on local advertising must be focused on the promotion of your 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. If we establish a Regional Advertising Co-op which includes your Barbershop, your Local Advertising |
Source: Item 6 — OTHER FEES (FDD pages 14–20)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the franchisee retains the Local Advertising Allocation funds. This allocation ranges from 1% to 2% of Gross Sales. The document specifies that this money is in addition to the National Marketing Contribution. Floyds 99 requires franchisees to use these funds to advertise their individual Barbershop, focusing on promotions to consumers.
Floyds 99 requires franchisees to spend the Local Advertising Allocation each calendar quarter and submit a report of expenditures as part of their financial reporting. The FDD stipulates that funds spent on recruitment or similar purposes through sites like Indeed or Craigslist do not qualify as approved local advertising.
However, if Floyds 99 establishes a Regional Advertising Co-op that includes a franchisee's Barbershop, the Local Advertising Allocation may be reallocated to the co-op. This means that while franchisees typically control their local advertising spend, this control can shift if a co-op is formed in their region. Franchisees should inquire about the likelihood of a co-op forming in their desired location and how that might impact their advertising strategy and budget.