How often must a Fly Fitness franchisee furnish a report on local advertising expenditures?
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 are required to spend a minimum of $500 per month on local advertising and marketing activities. The franchisor, Fly Fitness, retains the right to increase this local advertising contribution by 10% annually.
Furthermore, Fly Fitness requires franchisees to furnish a report on local advertising expenditures. These reports, along with supporting documentation, must be submitted quarterly, detailing the expenditures made during the previous calendar quarter. This allows Fly Fitness to monitor compliance with the minimum spending requirements and ensure that franchisees are actively promoting their businesses locally.
Fly Fitness also reserves the right to collect the local marketing contribution directly from the franchisee and allocate it on their behalf. This action would only be taken if the franchisee fails to meet the minimum advertising requirements as outlined in the Operations Manual. This provision ensures that local marketing efforts are maintained even if a franchisee is not actively managing them, safeguarding the brand's presence in the local market.