Did Fitstop or its affiliates derive any rebates/consideration from any third-party suppliers or providers over the past fiscal year ending December 31, 2023?

According to Fitstop's 2024 Franchise Disclosure Document, neither Fitstop nor its affiliates derived any rebates or consideration from third-party suppliers or providers during the fiscal year ending December 31, 2023. This means that Fitstop did not receive any payments, rebates, commissions, or other forms of compensation from suppliers based on their dealings with Fitstop franchisees or the Fitstop system as a whole during that period.

This information is relevant to potential franchisees because it provides transparency regarding Fitstop's financial relationships with its suppliers. It assures franchisees that Fitstop's recommendations or requirements to use specific suppliers are not influenced by direct financial incentives received by Fitstop from those suppliers. This can help build trust and confidence in the fairness of the supply chain arrangements.

However, the FDD also states that Fitstop and its affiliates may receive payments or other compensation from approved suppliers in the future. These could include rebates, commissions, or other forms of compensation. Fitstop may use these amounts for any purpose they deem appropriate. While Fitstop did not receive such compensation in the past fiscal year, this clause indicates that the arrangement could change, and franchisees should be aware of this possibility.

Prospective franchisees should monitor any changes to Fitstop's supplier relationships and compensation arrangements. Understanding these relationships is crucial for assessing the overall cost structure and profitability of the franchise. It would be prudent to inquire about the criteria Fitstop uses to select and approve suppliers and whether these criteria prioritize franchisee benefits, such as cost savings or product quality, over potential revenue generation for Fitstop itself.