How often will the Fly Fitness franchisor prepare a statement of the Brand Fund's operations?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.3.6.
Franchisor will prepare an unaudited annual statement of the Brand Fund's operations and will make it available to Franchisee upon request.
In administering the Brand Fund, Franchisor undertakes no obligation to make expenditures for Franchisee that are equivalent or proportionate to Franchisee's contribution or to ensure that any particular franchisee benefits directly or pro rata from the production or placement of advertising.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness will prepare an unaudited annual statement of the Brand Fund's operations. This statement will be made available to franchisees upon request.
This means that franchisees will receive a yearly overview of how the Brand Fund is being managed and spent. The Brand Fund is used for national advertising, marketing, and brand development, and franchisees are required to contribute 2% of their weekly gross revenue to it.
While the statement is unaudited, it provides a level of transparency regarding the Brand Fund's financial activities. Franchisees can request this statement to stay informed about how their contributions are being utilized to promote the Fly Fitness brand. It is important to note that Fly Fitness has no obligation to make expenditures for a franchisee that are equivalent or proportionate to the franchisee's contribution or to ensure that any particular franchisee benefits directly or pro rata from the production or placement of advertising.