What is Fly To Fit's obligation regarding the use of the Marketing Fund?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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. |
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. You must develop a market introduction plan and obtain our approval of the plan at least 30 days before the projected opening date of your business.
Required spending. After you open, you must spend at least 5% of gross sales each month on marketing your business.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
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, Fly To Fit will use the Marketing Fund only for marketing and related purposes and costs. 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, and has no other obligation to conduct advertising.
Fly To Fit franchisees must contribute 1% of gross sales per month to the Marketing Fund, although 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. Fly To Fit administers the fund, which is not audited, but Fly To Fit will make unaudited annual financial statements available upon request.
Because Fly To Fit is a new franchisor, it did not spend any money from the Marketing Fund in its 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.
After opening, franchisees must spend at least 5% of gross sales each month on marketing their business. 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 an advertising council.