Under what condition can the Floyds 99 Franchisor purchase local advertising for a franchisee?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisor has the option to purchase local advertising on behalf of a franchisee if the franchisee fails to spend their Local Advertising Allocation. In this case, the franchisee is obligated to reimburse Floyds 99 for the full cost of these advertising purchases.
Each Floyds 99 franchisee is required to spend a minimum of 1% of their quarterly gross sales on local advertising, referred to as the "Local Advertising Allocation", to promote their shop. The franchisor can also mandate that franchisees spend up to 2% of their gross sales per quarter on local advertising.
This provision ensures that all Floyds 99 locations actively engage in local marketing efforts. If a franchisee neglects this responsibility, the franchisor can step in to ensure that local advertising is conducted, safeguarding brand visibility and market presence. The franchisee remains financially responsible for these interventions.