When is the Fly To Fit Market Cooperative Contribution due?
Fly_To_Fit Franchise · 2024 FDDAnswer 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. Any location owned by us or any affiliate will have the same voting rights as our franchisees. Dues will be imposed by a majority vote and will not be less than 1% of gross sales. If any location owned by us or any affiliates have a majority vote, the maximum fees imposed will not exceed 3% 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 Market Cooperative Contribution is due monthly, by the 1st Tuesday of the following month. Currently, the amount of this contribution is set to none, as determined by the cooperative.
Fly To Fit retains the right to establish local or regional advertising cooperatives, with the maximum contribution capped at 5% of gross sales. Any Fly To Fit-owned location or affiliate will have the same voting rights as franchisees in these cooperatives. Dues will be imposed by a majority vote, but will not be less than 1% of gross sales.
If Fly To Fit or its affiliates hold a majority vote in the cooperative, the maximum fees imposed will not exceed 3% of gross sales. This structure ensures that franchisees have a voice in the cooperative's decisions, while also setting limits on the financial burden it can impose.