What must the Fly To Fit franchise agreement specify regarding advertising or promotional expenses for the franchisee?

According to the 2024 Fly To Fit Franchise Disclosure Document, the North Dakota Rider to the Franchise and Multi-Unit Development Agreement addresses advertising and promotional expenses. Specifically, it states that Fly To Fit cannot require a franchisee to participate in any advertising or promotional campaigns or materials at an expense that is indeterminate, determined by a third party, or determined by a formula.

However, this restriction does not apply if the franchise agreement specifies the maximum percentage of gross monthly sales or the maximum absolute sum that the franchisee may be required to pay. This means that the Fly To Fit franchise agreement must clearly define the financial limits of the franchisee's contribution to advertising or promotional activities if such participation is mandatory.

This provision protects Fly To Fit franchisees in North Dakota from potentially open-ended or unpredictable advertising expenses. It ensures that franchisees have a clear understanding of their financial obligations related to advertising and promotion, allowing them to better manage their budgets and assess the profitability of their franchise. Prospective franchisees should carefully review the franchise agreement to understand how advertising and promotional expenses are structured and what their maximum financial commitment may be.