Is Fly Fitness obligated to spend any amount on advertising in a franchisee's area or territory?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. You must list the Franchised Business in local business directories, including, but not limited to, listings on Internet search engines. If feasible, you may do cooperative advertising with other Fly Fitness franchisees in your area, with our prior written approval. You are required to establish a social media presence on sites such as Instagram, Facebook, and such other social media sites as determined by us. You are required to operate your social media presence in accordance with our brand standards as set forth in the Operations Manual.
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, Fly Fitness is not obligated to spend any amount on advertising in a franchisee's local area or territory. The franchisee is responsible for local advertising placement and must list the franchised business in local business directories and establish a social media presence.
However, Fly Fitness requires franchisees to contribute two percent (2%) of weekly Gross Revenue to the Brand Fund, which Fly Fitness administers. Fly Fitness may use these Brand Fund contributions for advertising, marketing, and promotional materials and programs. While Fly Fitness can use the Brand Fund to place advertising in national, regional, or local media, it has no obligation to place advertising or conduct marketing campaigns in any particular area, including the territory where the franchised business is located.
Fly Fitness may decide to establish a regional advertising fund or cooperative in the future, which may be mandatory for franchisees. If established, contributions to this regional fund would be in addition to the Brand Fund contributions but credited against required local advertising expenditures. Franchisees are also required to spend at least $15,000 on opening advertising and promotional activities and at least $500 per month on local advertising to promote their franchised business, with the possibility of a 10% annual increase. Fly Fitness reserves the right to collect some or all of the grand opening and local advertising funds to implement advertising on the franchisee's behalf.