For Fly To Fit, what is the Marketing Fund used for?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| | We will use the Marketing Fund only for marketing and related purposes | |---|---| | and costs. Media coverage is primarily local. We use outside vendors and consultants to produce | | | advertising. We are not required to spend any amount of advertising in the area or territory where | | | any particular franchisee is located. We will maintain the brand website (which may be paid for | | | by the Marketing Fund). We have no other obligation to conduct advertising. | |
Item 12 TERRITORY
Your Location
Your franchise is for a specific location. If the specific location is not known at the time you sign a franchise agreement, then your location is subject to our approval.
Grant of Territory
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 100,000 to 200,000 people from the location, whichever comes first. Your territory will usually be specified as a radius around your location; however, we may use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area).
Relocation; Establishment of Additional Outlets
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation.
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, the Marketing Fund is used for marketing and related purposes and costs. The media coverage is primarily local, and Fly To Fit uses outside vendors and consultants to produce advertising. Fly To Fit is not required to spend any amount of advertising in the area or territory where any particular franchisee is located. Fly To Fit will maintain the brand website, which may be paid for by the Marketing Fund. Fly To Fit has no other obligation to conduct advertising. Franchisees contribute 1% of gross sales per month to the Marketing Fund, though Fly To Fit reserves the right to have other franchisees contribute a different amount or at a different rate. Outlets that Fly To Fit owns are not obligated to contribute to the Marketing Fund. The fund is not audited, but Fly To Fit will make unaudited annual financial statements available upon request. No money from the Marketing Fund is spent principally to solicit new franchise sales. 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.
For a prospective Fly To Fit franchisee, this means that 1% of their gross sales will go towards a marketing fund that the franchisor controls. While the fund is intended for marketing purposes, there's no guarantee that these funds will be used to directly benefit the franchisee's specific location. The franchisee will need to develop a market introduction plan and obtain approval of the plan at least 30 days before the projected opening date of the business. After opening, the franchisee must spend at least 5% of gross sales each month on marketing their business.
It's important to note that Fly To Fit is a new franchisor, and they did not spend any money from the Marketing Fund in their most recently concluded fiscal year. This could be a risk for franchisees, as it indicates a lack of established marketing strategies or a proven track record of effective advertising campaigns. However, the FDD states that 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. Franchisees should inquire about the franchisor's specific plans for the Marketing Fund and how they intend to allocate resources to support franchisees' marketing efforts.