What activities can Fitstop use the Fund for?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You shall contribute to our brand development Fund in an amount equal to two percent (2%) of the Gross Revenue generated by the Franchised Business, which shall be billed and collected at the same time and manner as your recurring Royalty Fee under Section 13.4 above (your "Fund Contribution").
We may adminster and use the Fund for any and all activities we determine appropriate to promote, market, advertise and/or otherwise develop the System, Proprietary Marks, System Business locations, Approved Services/Products and/or our brand generally, as we determine appropriate in our discretion.
You acknowledge that we are 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to contribute to a brand development fund. This contribution is 2% of the Gross Revenue generated by the Franchised Business. These contributions are billed and collected at the same time and manner as the recurring Royalty Fee.
Fitstop has the discretion to use the fund for activities it deems appropriate to promote, market, advertise, and/or otherwise develop the System. This includes the Proprietary Marks, System Business locations, Approved Services/Products, and/or the Fitstop brand generally.
Fitstop is not required to expend any particular portion of the Fund or a franchisee's contributions on marketing or other services specifically allocated to their Designated Territory. This means that while franchisees contribute to the fund, they may not directly benefit from its use in their specific area. This is a common practice in franchising, allowing the franchisor flexibility in allocating resources to benefit the system as a whole.