Is Fly To Fit obligated to conduct advertising beyond maintaining the brand website?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Our obligation. 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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2024 FDD)
According to the 2024 Fly To Fit Franchise Disclosure Document, Fly To Fit's only obligation regarding advertising is to maintain the brand website, which may be paid for by the Marketing Fund. Fly To Fit is not required to spend any amount on advertising in the area or territory where any particular franchisee is located. Media coverage is primarily local, and Fly To Fit uses outside vendors and consultants to produce advertising.
Fly To Fit franchisees are required to contribute 1% of gross sales per month to the Marketing Fund, which Fly To Fit administers. Fly To Fit reserves the right to have other franchisees contribute a different amount or at a different rate, and outlets that Fly To Fit owns are not obligated to contribute to the Marketing Fund. Fly To Fit will make unaudited annual financial statements available to franchisees upon request.
Fly To Fit franchisees must spend at least 5% of gross sales each month on marketing their business after opening. Franchisees may use their own advertising or marketing material only with Fly To Fit's approval, which requires submitting the material at least 14 days prior to use. If Fly To Fit does not respond, the material is deemed rejected, but Fly To Fit may use any franchisee-developed advertising or marketing materials for any purpose without payment to the franchisee.
Fly To Fit does not have an advertising council composed of franchisees, and the franchise agreement does not give Fly To Fit the power to form one. Fly To Fit does not currently have any local or regional advertising cooperatives but has the right to require franchisees to participate in one. The amount franchisees must contribute to the cooperative will be determined by a vote of the members, but it will not be less than 1% and not more than 5% of gross sales.