Who directs the Fly Fitness Brand Fund?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.3.2. Franchisor shall direct the Brand Fund and shall have sole discretion to approve or disapprove the creative concepts, materials and media used in such programs and the placement and allocation thereof. Franchisee agrees and acknowledges that the Brand Fund is intended to maximize general public recognition and acceptance of
the Marks and enhance the collective success of all Franchised Businesses operating under the System.
13.3.3.
Franchisor may, but has no obligation to, contribute to the Brand Fund on the same basis as Franchisee with respect to Fly Fitness outlets operated by Franchisor or Franchisor's affiliates.
- 13.3.4.
Franchisor may use the Brand Fund to satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and disseminating advertising, marketing, promotional and public relations materials, programs, campaigns, sales and marketing seminars and training programs of every kind and nature, through media now existing or hereafter developed (including, without limitation, the cost of television, radio, magazine, social media, newspaper and electronic advertising campaigns; direct mail and outdoor billboard advertising; public relations activities; conducting marketing research, employing advertising agencies to assist therein; developing, enhancing and maintaining the Website; and personnel and other departmental costs for advertising that Franchisor internally administers or prepares).
- 13.3.5.
The Brand Fund will not be used to defray any of Franchisor's general operating expenses, except for reasonable administrative costs and overhead that Franchisor may incur in activities related to the administration and direction of the Brand Fund and such costs and expenses pursuant Section 13.3.4.
The Brand Fund and its earnings shall not otherwise inure to Franchisor's benefit except that any resulting technology and intellectual property shall be deemed the property of Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisor directs the Brand Fund. The franchisor has sole discretion to approve or disapprove the creative concepts, materials, and media used in advertising, marketing, and brand development programs, including their placement and allocation.
Fly Fitness intends for the Brand Fund to maximize public recognition and acceptance of the brand's trademarks, ultimately enhancing the success of all franchised businesses operating under the Fly Fitness system. The franchisor may also contribute to the Brand Fund, but is not obligated to, on the same basis as franchisees for Fly Fitness outlets they operate.
The franchisor can use the Brand Fund to cover various costs related to advertising, marketing, and promotional activities. These include developing materials, conducting marketing research, maintaining the website, and covering personnel costs for advertising that the franchisor manages internally. The Brand Fund will not be used for the franchisor's general operating expenses, except for reasonable administrative costs related to managing the fund. Any technology or intellectual property resulting from the Brand Fund's activities will be owned by the franchisor.