What is the Marketing Fund for Fly To Fit?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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Advertising Fund. You and all other franchisees must contribute to our Marketing Fund. Your contribution is 1% of gross sales per month. We reserve the right to have other franchisees contribute a different amount or at a different rate. Outlets that we own are not obligated to contribute to the Marketing Fund. We administer the fund. The fund is not audited. We will make unaudited annual financial statements available to you upon request.
Because we are a new franchisor, we did not spend any money from the Marketing Fund in our most recently concluded fiscal year.
If less than all marketing funds are spent in the fiscal year in which they accrue, the money will remain in the Marketing Fund to be spent in the next year.
No money from the Marketing Fund is spent principally to solicit new franchise sales.
Market introduction plan.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees are required to contribute to a Marketing Fund. This contribution is set at 1% of gross sales per month. However, Fly To Fit retains the right to mandate different contribution amounts or rates from other franchisees. Notably, outlets owned directly by Fly To Fit are exempt from contributing to this fund. The Marketing Fund is administered by Fly To Fit, and while it is not subject to an external audit, the franchisor will provide unaudited annual financial statements to franchisees upon request.
As a new franchisor, Fly To Fit states that it did not spend any money from the Marketing Fund in its most recently concluded fiscal year. Any unspent funds within a fiscal year will remain in the Marketing Fund for use in subsequent years. It is explicitly stated that no money from the Marketing Fund is used to solicit new franchise sales.
In addition to the Marketing Fund contribution, franchisees are also required to spend a minimum of 5% of gross sales each month on marketing their individual Fly To Fit business. This ensures a consistent local marketing effort alongside the broader initiatives funded by the Marketing Fund. Franchisees need to be aware of these dual marketing obligations—both the mandatory Marketing Fund contribution and the required local marketing expenditure—as they factor into the overall cost of operating a Fly To Fit franchise.