Can Fly Fitness increase the local advertising contribution required from franchisees?
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 must spend a minimum of $500 per month on local advertising and marketing activities after the initial grand opening phase. Fly Fitness retains the right to increase this local advertising contribution, but the increase is capped at ten percent (10%) annually.
This means that a prospective Fly Fitness franchisee should anticipate potential incremental increases to their monthly local advertising expenses. For example, if the franchisee is initially required to spend $500 per month, the following year Fly Fitness could increase this requirement by up to $50, bringing the total to $550 per month. This increase can occur each year.
Fly Fitness also has the right to collect the local marketing contribution and allocate it on behalf of the franchisee if the franchisee fails to meet the minimum requirements outlined in the Operations Manual. Franchisees are required to furnish Fly Fitness with a quarterly report and documentation of local advertising expenditures upon request, allowing Fly Fitness to monitor compliance with the local advertising requirements.