Does the Fly Fitness system currently have a regional advertising fund or cooperative?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all Fly Fitness franchisees in a designated geographic area. Our affiliate-owned outlets may participate in a regional cooperative, in our sole discretion, if we have a Fly Fitness in the area. Each Fly Fitness outlet, whether affiliateowned or franchisee-owned, will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents.
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, the Fly Fitness system does not currently have a regional advertising fund or cooperative. However, Fly Fitness retains the right to establish one in the future, and franchisee participation could be mandatory at their discretion.
If a regional cooperative is established, it will include all Fly Fitness franchisees within a specific geographic area, with each outlet having one vote, regardless of whether it is affiliate-owned or franchisee-owned. Fly Fitness has the authority to organize, govern, dissolve, merge, or change the structure of these cooperatives. Franchisees would be required to sign necessary documents and become members if a cooperative is established during their franchise term.
Should a regional advertising fund or cooperative be created, franchisees would be required to contribute amounts determined by Fly Fitness. These contributions would be in addition to the 2% of weekly gross revenue that franchisees must contribute to the Brand Fund. However, contributions to the regional fund or cooperative can be credited against the franchisee's required local advertising expenditures, which are at least $500 per month. Fly Fitness also does not have an advertising council composed of franchisees that advises them on advertising policies.