factual

When is the Fly To Fit local marketing/required spending fee due?

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

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Type of Fee Amount Due Date Remarks
Market Cooperative Contribution As determined by co-op. Currently, none. Monthly, by the 1st Tuesday of the following month We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales.

Source: Item 6 — OTHER FEES (FDD pages 12–16)

What This Means (2024 FDD)

According to Fly To Fit's 2024 Franchise Disclosure Document, the local marketing/required spending fee, which is 5% of your gross sales, is due monthly. Fly To Fit franchisees are required to use promotional materials purchased from Fly To Fit or provided by them. This fee is separate from the marketing fund contribution, which is 1% of gross sales and due monthly by the 1st Tuesday of the following month.

It is important to note that Fly To Fit also has the right to establish local or regional advertising cooperatives, which could require additional contributions from franchisees. The maximum contribution for a co-op is 5% of gross sales, but if any location owned by Fly To Fit or its affiliates has a majority vote, the maximum fees imposed will not exceed 3% of gross sales.

Prospective franchisees should carefully consider these marketing expenses and ensure they understand the requirements for promotional materials. They should also inquire about the likelihood of local or regional advertising cooperatives being established and how those costs would be determined.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.