What is the suggested monthly amount for Local Advertising for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 are suggested to spend $100 per month on local advertising. This amount is intended to promote the franchisee's Punch King Fitness business within their local market.
The FDD specifies that this $100 local advertising expenditure is 'suggested,' indicating that it is not a mandatory fee. However, Punch King Fitness recommends this amount to help franchisees build awareness and attract customers in their specific geographic area. The payment is due as incurred.
In addition to the local advertising suggestion, Punch King Fitness also requires franchisees to contribute 2% of gross revenues towards national advertising. This national fund is separate from the local advertising efforts and is used for broader brand promotion. Franchisees should consider both the suggested local advertising expenditure and the mandatory national advertising contribution when budgeting for marketing expenses.
Furthermore, there is also a Regional Cooperative Advertising fee of up to $100 per month. The amount is determined by the Cooperative. If outlets owned by Punch King Fitness have the controlling voting power, the Cooperative Contribution will not exceed $100 per month.