factual

What are the 'Approved Products' that a Fitstop System Business can offer?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

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Section 1: Background

  • 1.1 We have the right to license and we administer a system (the "Franchise System") that offers and awards franchises (the "Franchise") for the right to indepenedently own and operate a fitness facility (each, a "System Business") that features, offers, sell and/or provides: (i) membership-based and other fitness classes combining strength training, nutritional information and other fitness-related instruction and training; (ii) access to various fitness and gym equipment; (iii) group fitness training and any other services that we designate or authorize in our proprietary manual(s) (the "Manual(s)") and/or otherwise in writing (collectively with subparts (i)-(ii), the "Approved Services"); and (iv) any fitness apparel, merchandise, nutritional items, branded and/or privately-labeled retail items that we designate or otherwise approve in writing (collectively, the "Approved Products").
  • 1.2 Each System Business is authorized to operate (a) under the then-current proprietary marks, logos, associated taglines, names and/or trade dress that we designate now or in the future, including our current primary mark FITSTOP® (collectively, the "Proprietary Marks"), and (b) the system that we and our affiliates have developed for use in connection with the establishment of a System Business (the "System").
  • 1.3 Based on the financial and/or other representations you made in your franchise application package and subsequent correspondence, upon which we have materially and reasonably relied, we are willing to award you the right to own and operate a franchised System Business (the "Franchised Business") from a specifc location that you propose and we approve (the "Premises"), subject to and in accordance with the terms and conditions set forth in this Agremeent.
  • 1.4 You agree and acknowledge that: (i) you will pay all fees and other amounts payable by you as set out in this Agreement as and when required in connection with the Franchised Business; and (ii) the payments of any amounts to us constitute reasonable consideration for the franchise and other rights you are awarded in connection with your Franchised Business during the term hereof.
  • 1.5 The Parties and any third party body which the Parties may call upon to interpret this Agreement shall interpret the provisions of this Agreement to give effect to the intent of this Agreement to strictly adhere to and act in conformity with the System, as it now exists and as we may modify them from time to time via the Manuals or other prior written notice.

Section 2: Franchise Award; Premises and Designated Territory

©2024 Fitstop USA, Inc. 2.1 Franchise Award; Approved Premises. We award you the right, and you undertake and accept the obligation, to independently own and operate the Franchised Business from the location you propose, we approve and you secure in accordance with the terms of this Agreement (the "Premises").

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, a Fitstop System Business can offer fitness apparel, merchandise, nutritional items, and branded or privately-labeled retail items that Fitstop designates or approves in writing. The specific list of Approved Products is detailed in the Manuals, and franchisees are required to exclusively use or sell these Approved Products at their premises. Franchisees cannot discontinue or fail to offer any Approved Product unless Fitstop agrees in writing or if the product is not authorized for sale under applicable laws in the location of the Franchised Business.

Fitstop retains the right to modify the list of Approved Products during the term of the agreement. They can designate a product as an Approved Product, remove a product from the approved list, or change the standards for an Approved Product. Franchisees must implement these changes within 30 calendar days of receiving written notice from Fitstop.

To ensure quality control, franchisees must follow Fitstop's instructions regarding the services, systems, procedures, and methods for maintaining adequate quality control of the Approved Products. Franchisees are also obligated to comply with any pricing policies and guidelines set by Fitstop, including maximum prices for Approved Products. Fitstop may also negotiate and receive rebates from manufacturers and suppliers of Approved Products, which they retain for their own benefit.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.