Who administers the Brand Development Fund for Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, any Fund Contributions are payable to us. We have the right to establish in the future a non-profit corporation or other business entity to collect Fund advertising contributions from our Franchisees. The Fund is administered by our accounting and marketing personnel under our direction. We may have the Fund borrow from us or other lenders to cover any Fund deficits. We may have the fund invest any surplus for the Fund's future use. You will be able to obtain an accounting annually upon written request to our President at our principal place of business 120 days after our latest fiscal year end. We claim no power to require that advertising cooperatives be formed, changed, dissolved or merged.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Brand Development Fund is administered by Fitstop's accounting and marketing personnel under the direction of Fitstop. Currently, franchisees pay any Fund Contributions to Fitstop. Fitstop has the right to establish a non-profit corporation or other business entity to collect Fund advertising contributions from franchisees in the future.
Fitstop may borrow from lenders to cover any Fund deficits and invest any surplus for the Fund's future use. A Fitstop franchisee can obtain an accounting annually upon written request to Fitstop's President at its principal place of business 120 days after Fitstop's latest fiscal year end.
As of the issue date of the 2024 Disclosure Document, Fitstop has not yet established a Fund. As such, Fitstop neither collected nor expended any Fund Contributions in the fiscal year ending December 31, 2023. This means that franchisees were not yet required to contribute to the fund, and no marketing or advertising initiatives were funded through this specific mechanism during that period.