Who manages the Marketing Fund for Fly To Fit?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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;
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit Franchise manages the Marketing Fund. Specifically, Fly To Fit Franchise holds the Marketing Fund contributions in separate bank accounts and has the sole discretion on how the funds are spent. The FDD states that Fly To Fit Franchise has no fiduciary duty regarding the Marketing Fund.
Fly To Fit Franchise uses the Marketing Fund for marketing, advertising, and public relations activities, which may include development and placement of advertising and promotions, sponsorships, social media, internet activities, market research, and administrative expenses related to the Marketing Fund. These activities can occur at the local, regional, national, and international levels.
Fly To Fit Franchise will provide an unaudited annual financial statement of the Marketing Fund to franchisees upon request within 120 days of the close of Fly To Fit Franchise's fiscal year. Franchisees should be aware that expenditures from the Marketing Fund do not need to be proportionate to their contributions or provide any direct or indirect benefit to them.