When is the Fly To Fit Market Cooperative Contribution due each month?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 contribution amount is set to none, but Fly To Fit retains the right to establish local or regional advertising cooperatives in the future.
If a cooperative is established, the maximum contribution that Fly To Fit may require is 5% of gross sales. The contribution will be determined by a majority vote, but will not be less than 1% of gross sales.
It is important to note that Fly To Fit or its affiliates will have the same voting rights as franchisees in determining cooperative dues. If Fly To Fit or its affiliates hold a majority vote, the maximum fees imposed will not exceed 3% of gross sales. This could impact the franchisee's ability to control the amount of the Market Cooperative Contribution.