What documentation must a Fly Fitness franchisee provide regarding local advertising expenditures?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
of your Franchised Business. Thereafter, you must spend a minimum of $500 per month on local advertising and marketing activities. We reserve the right to increase the local advertising contribution by ten percent (10%) annually. Upon our request, you must furnish us with a quarterly report and documentation of local advertising expenditures during the previous calendar quarter. We reserve the right to collect local marketing contribution and
allocate it on behalf of the franchisee, should the franchisee fail to meet the minimum requirements as set f
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–18)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are required to spend a minimum of $500 per month on local advertising and marketing activities. Fly Fitness also retains the right to increase this local advertising contribution by 10% annually.
To ensure compliance, Fly Fitness requires franchisees to furnish a quarterly report, along with supporting documentation, detailing all local advertising expenditures incurred during the previous calendar quarter. This allows Fly Fitness to monitor whether franchisees are meeting their minimum advertising obligations.
Furthermore, the FDD states that Fly Fitness reserves the right to collect the local marketing contribution directly from the franchisee and allocate it on their behalf if the franchisee fails to meet the minimum advertising requirements as outlined in the Operations Manual. This provision ensures that local marketing efforts are maintained even if a franchisee is not actively managing them.
In summary, a Fly Fitness franchisee must keep detailed records of their local advertising spending and be prepared to submit these records to Fly Fitness on a quarterly basis. Failure to meet the minimum spending requirements or provide adequate documentation could result in Fly Fitness taking control of the franchisee's local marketing efforts.