Does Fly To Fit have the right to establish local or regional advertising cooperatives?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Monthly, by the 1st Tuesday of the following month | We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales. Any location owned by us or any affiliate will have the same voting rights as our franchisees. Dues will be imposed by a majority vote and will not be less than 1% of gross sales. If any location owned by us or any affiliates have a majority vote, the maximum fees imposed will not exceed 3% of gross sales. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit retains the right to establish local or regional advertising cooperatives. Currently, there are no market cooperatives, but if established, franchisees may be required to contribute. The contribution amount will be determined by the cooperative.
The maximum contribution that a Fly To Fit cooperative can require is 5% of gross sales. Dues will be imposed by a majority vote and will not be less than 1% of gross sales.
Furthermore, if any Fly To Fit location owned by the company or its affiliates has a majority vote in the cooperative, the maximum fees imposed will not exceed 3% of gross sales. Any location owned by Fly To Fit or its affiliates will have the same voting rights as franchisees.