What is the maximum amount for Regional Cooperative Advertising for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
OTHER FEES**
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 5% of Gross Revenues1 each month after opening ("Standard Royalty") and when open 6 full calendar months, Standard Royalty or $1,000 ("Minimum Royalty"), whichever is greater, each and every month thereafter | 4th of each month | Royalty Fees are payable by electronic funds transfer. |
| National Advertising Contributions | 2% of Gross Revenues | 4th of each month | National Advertising Contributions are contributions to the National Advertising Fund payable by electronic funds transfer. |
| Local Advertising | $100 per month | As incurred | It is suggested that you spend this amount locally to promote your Franchised Business. |
| Regional | Up to $100 per month | As incurred | The amount is determined by |
| Advertising | the Cooperative | ||
| Cooperative2 | bu |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees may be required to contribute to regional advertising cooperatives, with contributions up to $100 per month. These regional advertising cooperatives are established to promote the Punch King Fitness brand and services within a specific geographic area. The amount is determined by the Cooperative.
The FDD specifies that the amount franchisees pay towards regional advertising is determined by the cooperative itself, but will not exceed $100 per month. This contribution is separate from the 2% of gross revenues that franchisees must contribute to the National Advertising Fund.
Prospective franchisees should inquire about the structure and activities of any regional advertising cooperative in their area to understand how these funds are used and what benefits they can expect. Understanding the cooperative's plans and budget can help franchisees assess the value of their contribution and plan their local marketing efforts accordingly.