How many votes does each Fly Fitness outlet have in the advertising cooperative?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4 Each outlet in the cooperative, whether franchised or affiliate-owned, shall have one vote to determine any fees or other requirements imposed by the advertising cooperative.
No cooperatives will be formed or maintained that result in our affiliate-owned outlets having a controlling voting power.
You may be required to contribute up to 70% of your local marketing requirement towards the cooperative.
Source: Item 6 — OTHER FEES (FDD pages 8–14)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, each outlet, whether franchised or affiliate-owned, has one vote in the advertising cooperative. This vote is used to determine any fees or other requirements imposed by the cooperative. Fly Fitness also ensures that affiliate-owned outlets do not have controlling voting power within the cooperative.
This arrangement ensures that franchisees have a voice in the advertising cooperative's decisions, specifically regarding fees and requirements. The allocation of one vote per outlet, regardless of ownership type, aims to provide a balanced representation. This can be beneficial for franchisees as it allows them to participate in decisions that affect their advertising contributions and strategies.
The provision preventing affiliate-owned outlets from having controlling voting power is a safeguard for franchisees. It ensures that the interests of the franchised outlets are not overshadowed by the interests of the company-owned outlets. This can help maintain a fair and equitable environment within the advertising cooperative.
Franchisees may be required to contribute up to 70% of their local marketing requirement towards the cooperative. This contribution, combined with the voting rights, highlights the importance of franchisee involvement in the advertising strategies and financial decisions of the Fly Fitness system.