Can Fly To Fit delegate responsibility for administration of the advertising cooperative to an outside company?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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, Fly To Fit administers the advertising cooperative but has the right to delegate this responsibility to an outside company. This outside company could be an advertising agency or accounting firm, or even to the franchisee members of the cooperative.
This means that as a Fly To Fit franchisee, you may not always be dealing directly with the franchisor regarding the advertising cooperative. The administration could be handled by a third-party, which could impact communication and decision-making processes related to advertising strategies and expenditures. It is important to note that Fly To Fit also has the right to require the cooperative to operate from written bylaws or other governing documents that they determine.
Fly To Fit maintains the power to require cooperatives to be formed, changed, dissolved, or merged. As a franchisee, it is important to understand that the structure and administration of any advertising cooperative you are involved in could change based on Fly To Fit's decisions. Prospective franchisees should inquire about the criteria Fly To Fit uses to select an outside company and what recourse franchisees have if they disagree with the outside company's administration.