Is the Fly Fitness franchisor obligated to contribute to the Brand Fund?

According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisor is not obligated to contribute to the Brand Fund. While franchisees are required to contribute 2% of their weekly Gross Revenue to the Brand Fund, Fly Fitness has the option, but not the requirement, to contribute to the Brand Fund on the same basis as franchisees for Fly Fitness outlets operated by the franchisor or its affiliates.

This means that while franchisees must pay into the Brand Fund, there is no guarantee that Fly Fitness itself will also contribute. The Brand Fund is used for national advertising, marketing, and brand development, and Fly Fitness has sole discretion over how the funds are used.

For a prospective franchisee, this is an important consideration. While you are mandated to contribute to the Brand Fund, Fly Fitness is not. This could impact the overall resources available for marketing and brand development, and franchisees should factor this into their financial projections and expectations for brand support. It is important to note that the Brand Fund will not be used to defray any of Fly Fitness's general operating expenses, except for reasonable administrative costs.