Does Fly Fitness require franchisees to make advertising expenditures?
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 activities and/or Local Advertising on your behalf.
You may develop advertising materials for your own use at your own cost, and you may use marketing materials that we may offer to you from time to time. You may not use any advertising or marketing materials, including press releases, unless they have been approved in advance in writing by us, which approval may be withheld in our discretion. We will respond to your request for approval within ten (10) business days; however, if we do not respond within ten (10) business days, the proposed advertising 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.
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 make advertising expenditures. Specifically, Fly Fitness mandates that franchisees spend a minimum of $15,000 on opening advertising and promotional activities. This spending must occur within the six weeks leading up to the opening of the franchise and continue for two months following the opening.
After the initial grand opening phase, Fly Fitness franchisees must allocate at least $500 per month to local advertising efforts to promote their Fly Fitness business. This ongoing monthly expenditure ensures continuous marketing and brand visibility in the local territory. Fly Fitness retains the right to increase this local advertising contribution by up to 10% annually, allowing for adjustments based on market conditions and advertising costs.
Fly Fitness also requires franchisees to contribute 2% of their weekly gross revenue to the System-wide Brand Fund. These contributions are used by Fly Fitness for various advertising, marketing, and public relations activities at the system-wide level. While Fly Fitness does not currently have a regional advertising fund, it reserves the right to establish one in the future, which would require additional contributions from franchisees. However, contributions to a regional advertising fund or cooperative will be credited against the franchisee's required expenditures for local advertising.
Fly Fitness maintains control over advertising materials, requiring franchisees to obtain written approval before using any advertising or marketing content. This includes materials franchisees develop themselves. This approval process allows Fly Fitness to ensure brand consistency and compliance with their standards. The franchisor will respond to advertising approval requests within ten business days; otherwise, the material is deemed disapproved.