Can Fly To Fit Franchise implement marketing plans or campaigns?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
of the System, or it may permit franchisees to operate one or more accounts. Franchisee must comply with any System Standards regarding marketing, advertising, and public relations, include any social media policy that Fly To Fit Franchise may prescribe. Franchisee shall implement any marketing plans or campaigns determined by Fly To Fit Franchise.
- 9.2 Use by Fly To Fit Franchise. Fly To Fit Franchise may use any marketing materials or campaigns developed by or on behalf of Franchisee, and Franchisee hereby grants an unlimited, perpetual, royalty-free license to Fly To Fit Franchise for such purpose.
- 9.3 Marketing Fund. Fly To Fit Franchise may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level. If Fly To Fit Franchise has established a Marketing Fund:
- (a) Separate Account. Fly To Fit Franchise shall hold the Marketing Fund Contributions from all franchisees in one or more bank accounts separate from Fly To Fit Franchise's other accounts.
- (b) Use. Fly To Fit Franchise shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead. The foregoing includes such activities and expenses as Fly To Fit Franchise reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of Fly To Fit Franchise's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
- (c) Discretion. Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee. The Marketing Fund will be spent at Fly To Fit Franchise's sole discretion, and Fly To Fit Franchise has no fiduciary duty with regard to the Marketing Fund.
- (d) Contribution by Other Outlets.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees are required to implement marketing plans or campaigns determined by Fly To Fit Franchise. However, franchisees are not allowed to conduct any marketing, advertising, or public relations activities, including in-store marketing materials, websites, online advertising, social media marketing, or sponsorships, without prior approval from Fly To Fit Franchise. This includes compliance with any System Standards regarding marketing, advertising, and public relations, including any social media policy that Fly To Fit Franchise may prescribe.
Fly To Fit Franchise retains the right to use any marketing materials or campaigns developed by or on behalf of the franchisee, granting Fly To Fit Franchise an unlimited, perpetual, royalty-free license for such use. Fly To Fit may also establish a Marketing Fund to promote the System on various levels, using contributions from franchisees for marketing, advertising, and public relations efforts. The expenditures from the Marketing Fund are at Fly To Fit's sole discretion and need not be proportionate to individual franchisee contributions.
Furthermore, franchisees are obligated to spend at least 5% of their Gross Sales each month on marketing the Business, and must provide proof of compliance upon request. Fly To Fit Franchise has the sole discretion to determine what activities constitute "marketing" under this requirement. Franchisees must also develop a market introduction plan and obtain Fly To Fit Franchise's approval at least 30 days before the business's projected opening date.
Fly To Fit may establish market advertising and promotional cooperative funds (“Market Cooperative”) in any geographical areas. If the Business participates in a Market Cooperative, then Franchisee shall contribute to the Market Cooperative a percentage of Gross Sales (or other amount) determined by the Market Cooperative, not to exceed 5%.