Can Fitstop allocate discounted or free memberships to certain individuals or groups?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.4.5 Pricing Policies. You shall comply with any pricing policies and guidelines which we reasonably notify you of from time to time and we are lawfully able to impose including policies under which we specify a maximum price for the Approved Products or services.
Where reasonably necessary to protect our legitimate commercial interest, we may change our recommended or maximum retail prices, charges, discounts relating to or affecting any of the Approved Products or services and issue new or changed or modified recommended or maximum price lists upon notice.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must comply with any pricing policies and guidelines that Fitstop reasonably implements, including policies that specify a maximum price for approved products or services. Fitstop retains the right to change recommended or maximum retail prices, charges, and discounts relating to approved products or services, provided they give notice to the franchisee.
This means that while Fitstop franchisees have some autonomy in setting prices, Fitstop can influence pricing through policies and guidelines. The FDD does not explicitly state whether Fitstop can mandate or implement discounted or free memberships for certain individuals or groups. However, the ability to set maximum prices and change discount policies suggests Fitstop has the power to influence membership pricing strategies.
For a prospective franchisee, this indicates that Fitstop could potentially introduce promotions or pricing structures that include discounted or free memberships. It is important to note that Fitstop must provide notice before changing pricing or discount policies. Franchisees should discuss with Fitstop the extent to which they can independently determine membership pricing and whether Fitstop has plans to implement specific discount programs.
Therefore, while the FDD does not directly address the question of free or discounted memberships, the clauses regarding pricing policies and the ability to change discount structures suggest that Fitstop could potentially influence or implement such programs. A prospective franchisee should seek clarification from Fitstop regarding their policies on membership pricing and promotional discounts.