If Fly Fitness establishes a regional advertising fund or cooperative, are contributions in addition to the Brand Fund contributions?

According to Fly Fitness's 2024 Franchise Disclosure Document, if a regional advertising fund or cooperative is established, contributions to it are in addition to the required contributions to the Brand Fund. However, contributions made to the regional advertising fund or cooperative will be credited against the franchisee's required expenditures for local advertising.

Currently, Fly Fitness does not have a regional advertising fund or cooperative, but the company may decide to establish one in the future. If established, participation may be mandatory at Fly Fitness's sole discretion. The regional cooperative would consist of all Fly Fitness franchisees within a specific geographic area, and affiliate-owned outlets may participate at Fly Fitness's discretion if there is a Fly Fitness in the area. Each outlet, whether affiliate-owned or franchisee-owned, will have one vote in the cooperative.

Fly Fitness will determine the organization and governance of each cooperative in advance and has the right to form, dissolve, merge, or change the structure of the cooperatives. If a cooperative is established during the term of the Franchise Agreement, franchisees must sign all required documents and become a member according to the terms of those documents. This means that while franchisees must contribute to both the Brand Fund and any regional advertising fund, the regional contributions offset the local advertising expenses franchisees are already required to make.