What is a Fly Fitness franchisee required to do if the franchisor establishes an advertising cooperative?

According to Fly Fitness's 2024 Franchise Disclosure Document, if Fly Fitness establishes an advertising cooperative, franchisees must contribute the amounts that Fly Fitness requires, in addition to the required Brand Fund Contributions.

This means that franchisees will be obligated to pay into the cooperative, potentially increasing their advertising expenses beyond the standard Brand Fund contribution of two percent of weekly gross revenue. The franchisor has the discretion to determine the amount franchisees must contribute to the cooperative.

Prospective franchisees should consider this potential additional cost when evaluating the financial feasibility of a Fly Fitness franchise. It would be prudent to inquire with Fly Fitness about the circumstances under which an advertising cooperative might be formed and how the contribution amounts would be determined to better understand the potential financial impact.