Does Fly To Fit have any advertising obligations beyond maintaining the brand website?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which may be paid for by the Marketing Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative. We will define the area of the cooperative based on media markets, or other geographic criteria that we deem appropriate. Each franchisee in the area would have one vote per outlet (unless the franchisee is in default under its franchise agreement). The amount you must contribute to the cooperative will be determined by vote of the members, but not less than 1% and not more than 5% of gross sales. If our own outlets are members of a cooperative, they must contribute to the cooperative on the same basis as franchisees, and they will vote on the same basis as other members. We administer the cooperative, but we have the right to delegate responsibility for administration to an outside company such as an advertising agency or accounting firm, or to the franchisee members of the cooperative. We have the right to require the cooperative to operate from written bylaws or other governing documents that we determine. The documents are not currently available for you to review. Cooperatives will prepare annual financial statements which will be made available for review only by us and by the members of cooperative. We have the power to require cooperatives to be formed, changed, dissolved, or merged.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the company's sole advertising obligation is to maintain the brand website. This website may be funded by the Marketing Fund. Fly To Fit is not required to spend any amount on advertising in the area or territory where any particular franchisee is located.
Fly To Fit franchisees are allowed to use their own advertising or marketing material, but it is subject to approval from Fly To Fit. Franchisees must submit any proposed advertising or marketing material at least 14 days prior to use. If Fly To Fit does not respond, the material is considered rejected. Fly To Fit may use any advertising or marketing materials developed by franchisees for any purpose without payment to the franchisee.
Fly To Fit does not have an advertising council composed of franchisees, and the franchise agreement does not give Fly To Fit the power to form one. Fly To Fit also does not currently have any local or regional advertising cooperatives, but they reserve the right to require franchisees to participate in one. Franchisees would contribute between 1% and 5% of gross sales to the cooperative, as determined by the members. Fly To Fit has the power to require cooperatives to be formed, changed, dissolved, or merged.