What is the minimum amount a Fly Fitness franchisee must spend on opening advertising and promotional activities?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
sing** (Franchise Agreement, Sections 13.2 and 13.6)
We require you to spend at least Fifteen Thousand Dollars ($15,000.00) in opening advertising and promotional activities commencing six (6) weeks prior to and during the two (2) months following the opening of your Franchised Business in the Territory. Thereafter, you are required to spend at least Five Hundred Dollars ($500) per month on local advertising to promote your Franchised Business. We reserve the right to increase your 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 some or all of your grand opening funds and/or your Local Advertising expenditure and implement grand opening campaign
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are required to invest a minimum of $15,000 in advertising and promotional activities when opening their franchise. This advertising spend must occur within a specific timeframe.
Specifically, the $15,000 must be spent commencing six weeks prior to the Fly Fitness location opening and continue through the two months following the opening. This initial advertising investment is intended to create awareness and attract customers to the new Fly Fitness studio during its crucial launch phase.
After the initial opening period, franchisees must continue to invest in local advertising, with a minimum spend of $500 per month. Fly Fitness also retains the right to increase this monthly local advertising contribution by up to 10% annually. Franchisees must provide quarterly reports and documentation of their local advertising expenditures to Fly Fitness upon request. Fly Fitness also reserves the right to collect grand opening and local advertising funds to implement advertising campaigns on the franchisee's behalf.
This advertising requirement ensures that each Fly Fitness location actively promotes its services within its local market, contributing to brand recognition and customer acquisition. The franchisor's oversight and potential control over advertising funds provide a mechanism for ensuring consistent and effective marketing efforts across the Fly Fitness system.