Does Fly Fitness provide placement of local advertising for franchisees?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
sing or marketing material is deemed "disapproved".
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.
System-wide Brand Fund (Franchise Agreement, Section 13.3)
You are required to contribute to the Brand Fund Two percent (2%) of weekly Gross Revenue. Each Fly Fitness outlet is required to contribute to the Brand Fund. Each Fly Fitness outlet operated by our affiliate or us may contribute to the Brand Fund, in our discretion, but has no obligation to do so.
The Brand Fund is administered by us. We may use Brand Fund contributions to pay any and all costs for the development, production and placement of advertising, marketing, promotional and
public relations materials, and programs. We may also use Brand Fund contributions to pay any and all costs of marketing seminars and training programs, market research, services of advertising and/or public relations agencies, and website development and maintenance. We may further use Brand Fund contributions to pay our costs (including personnel and other administrative costs) for advertising that is administered by us or prepared by us, as well as for administration and direction of the Brand Fund.
The Brand Fund will not be used to defray any of our other general operating expenses. Brand Fund contributions will not be used to solicit new franchise sales; provided however, we reserve the right to include "Franchises Available" or similar language and contact information in advertising produced with Brand Fund contributions.
The Brand Fund collects and expends the Brand Fund contributions for the benefit of the System as a whole. We reserve the right to use the Brand Fund contributions to place advertising in national, regional, or local media (including broadcast, print, or other media) and to conduct marketing campaigns through any channel, in our discretion, including but not limited to, Internet and directmail campaigns. We have no obligation, however, to place advertising or conduct marketing campaigns in any particular area, including the Territory where your Franchised Business is located. The Brand Fund and its earnings shall not otherwise inure to our benefit except that any resulting technology and intellectual property shall be deemed our property.
We have no obligation to make expenditures that are equivalent or proportionate to your Brand Fund contribution or to ensure that you benefit directly or pro rata from the production or placement of advertising from the Brand Fund.
The Brand Fund is not audited. An annual unaudited financial statement of the Brand Fund is available to any franchisee upon written request.
If we spend more or less than the total of all contributions to the Brand Fund in any fiscal year, we may carry-forward any surplus or deficit to the next fiscal year.
As of our fiscal year ended December 31, 2023, no Brand Fund contributions were required, made, or expended. Although the Brand Fund is intended to be of perpetual duration, we may terminate it at any time and for any reason or no reason.
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 does not provide local advertising placement for its franchisees. The franchisee is responsible for placing their own local advertising and must list the franchised business in local business directories and on Internet search engines. However, franchisees may do cooperative advertising with other Fly Fitness franchisees in their area, with Fly Fitness's prior written approval.
Fly Fitness requires franchisees to spend at least $15,000 in opening advertising and promotional activities in the six weeks before and two months following the opening of their franchise. After that, franchisees must spend at least $500 per month on local advertising. Fly Fitness reserves the right to increase the local advertising contribution by 10% annually. Franchisees must provide Fly Fitness with a quarterly report and documentation of local advertising expenditures. Fly Fitness also reserves the right to collect grand opening and local advertising funds to implement advertising on the franchisee's behalf.
Fly Fitness requires franchisees to establish a social media presence on sites such as Instagram and Facebook and operate their social media presence according to Fly Fitness's brand standards. Franchisees may develop advertising materials for their own use at their own cost and may use marketing materials that Fly Fitness may offer. However, franchisees may not use any advertising or marketing materials, including press releases, unless Fly Fitness has approved them in advance in writing. Fly Fitness will respond to the request for approval within ten business days; otherwise, the material is deemed disapproved.
Fly Fitness franchisees are required to contribute 2% of weekly Gross Revenue to the Brand Fund, which Fly Fitness administers. Fly Fitness may use Brand Fund contributions to pay for the development, production, and placement of advertising, marketing, promotional, and public relations materials and programs. They may also use the Brand Fund to pay for marketing seminars and training programs, market research, services of advertising and/or public relations agencies, and website development and maintenance. The Brand Fund will not be used to defray any of Fly Fitness's other general operating expenses, but Fly Fitness reserves the right to include "Franchises Available" language in advertising produced with Brand Fund contributions.