For what activities may Fitstop use the brand development Fund?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
we otherwise provide our prior written consent.
- 6.5 Brand Development Fund. We have established or expect to establish a brand development fund (the "Fund") designed to promote, advertise, market and/or otherwise develop the System, Proprietary Marks, System Business(es), Approved Services/Products and/or our brand generally. You will be required to contribute to the Fund an amount equal to two percent (2%) of the Gross Revenue of the Franchised Business ("Fund Contributions"), which shall be remitted to us at the same time and in the same manner as your Royalty Fees (unless we designate another method upon at least 30 days' prior written notice via the Manual(s) or otherwise). All Fund Contributions are non-refundable upon payment, and we will account separately for all sums paid to the Fund.
- 6.6 System Marketing Material and/or Promotional Campaigns. We will direct all advertising programs and have sole discretion to approve or disapprove the creative concepts, materials, and media used in the programs. Based thereon, we will have sole discretion to administer the marketing fees this Agreement describes herein. Subject to the exceptions this Agreement identifies and the Manual(s), you shall use only advertising and advertising materials we provide.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the brand development fund is designed to promote, advertise, market, and develop the Fitstop system. This includes the Proprietary Marks, System Businesses, Approved Services/Products, and the Fitstop brand in general.
The franchisee is required to contribute 2% of their Gross Revenue to the fund. These contributions are remitted at the same time and manner as the royalty fees, unless Fitstop designates another method with 30 days' prior written notice. All contributions to the fund are non-refundable upon payment, and Fitstop will account separately for all sums paid into the Fund.
Fitstop has sole discretion to administer the marketing fees. They also have the authority to approve or disapprove creative concepts, materials, and media used in advertising programs. Fitstop is not required to expend any particular portion of the Fund or your Fund Contributions on marketing or other services that are allocated specifically to your Designated Territory.