What is the Marketing Fund for Fly To Fit primarily used for?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of Fly To Fit Franchise's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
- (c) Discretion.
Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee.
The Marketing Fund will be spent at Fly To Fit Franchise's sole discretion, and Fly To Fit Franchise has no fiduciary duty with regard to the Marketing Fund.
- (d) Contribution by Other Outlets.
Fly To Fit Franchise is not obligated to (i) have all other Fly To Fit businesses (whether owned by other franchisees or by Fly To Fit Franchise or its
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Marketing Fund is used for marketing, advertising, and public relations. This includes materials, programs, and campaigns at the local, regional, national, and international levels, as well as related overhead.
The FDD specifies that these activities and expenses may include the development and placement of advertising and promotions, sponsorships, contests and sweepstakes, and the development of décor, trade dress, Marks, and branding. It also covers the development and maintenance of brand websites, social media, internet activities, e-commerce programs, search engine optimization, market research, public relations, media or agency costs, trade shows and other events, printing and mailing, and administrative and overhead expenses related to the Marketing Fund. These expenses can also include compensation for Fly To Fit's employees working on marketing and for accounting, bookkeeping, reporting, legal, and other expenses related to the Marketing Fund.
The franchisee agrees that the Marketing Fund expenditures do not need to be proportionate to their contributions or provide any direct or indirect benefit to them. The fund will be spent at Fly To Fit's sole discretion, and Fly To Fit has no fiduciary duty regarding the Marketing Fund. Fly To Fit is not obligated to have all Fly To Fit businesses contribute to the Marketing Fund or contribute the same amount or rate as the franchisee.