Can Fly Fitness use Brand Fund contributions to solicit new franchise sales?

According to Fly Fitness's 2024 Franchise Disclosure Document, the Brand Fund, which franchisees are required to contribute to at a rate of 2% of weekly Gross Revenue, will generally not be used to solicit new franchise sales. However, Fly Fitness retains the right to include "Franchises Available" or similar language and contact information in advertising produced using Brand Fund contributions.

This means that while the primary purpose of the Brand Fund is to promote the Fly Fitness brand and support existing franchisees through marketing and advertising initiatives, Fly Fitness can still use advertising created with Brand Fund money to attract potential new franchisees. This is a common practice in franchising, allowing the franchisor to leverage system-wide marketing efforts for franchise development.

For a prospective franchisee, this implies that a portion of their Brand Fund contributions could indirectly support franchise sales efforts. However, the FDD makes it clear that the Brand Fund's main focus is on general brand promotion and marketing, not solely on recruiting new franchisees. Franchisees should be aware that Fly Fitness has the discretion to include franchise availability information in its advertising materials funded by the Brand Fund.