Besides the disclosed affiliate, has either of the two affiliates of Fitstop offered or awarded franchises or licenses in any line of business?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as specifically disclosed above, neither of these two (2) affiliates has (a) offered or awarded franchises or licenses in any line of business, or (b) engaged in any other material business activities.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–9)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop USA, Inc. has two affiliates: Fitstop Australia Pty Ltd (the "Affiliate Franchisor") and Fitstop IP Pty Limited (the "TM Owner"). The FDD states that Fitstop Australia Pty Ltd has been offering and awarding franchises for businesses substantially similar to Fitstop since January 2017. As of December 31, 2023, there were 125 such franchises open and operating under agreements with the Affiliate Franchisor, but none of these franchises were offered within the United States. Fitstop IP Pty Limited, the TM Owner, licenses the Proprietary Marks to both Fitstop USA, Inc. and Fitstop Australia Pty Ltd.
The FDD explicitly states that, except for Fitstop Australia Pty Ltd offering Fitstop franchises, neither of the two affiliates has offered or awarded franchises or licenses in any other line of business. This means that Fitstop IP Pty Limited, the TM Owner, has not offered franchises or licenses in any line of business. Similarly, Fitstop Holdings Pty Limited, the Parent company, has not offered or awarded franchises or licenses in any line of business, except for owning Fitstop USA, Inc. and certain affiliate entities.
For a prospective franchisee, this information indicates that the Fitstop brand is primarily managed within the disclosed structure. The Australian affiliate focuses on franchising in Australia, while Fitstop USA, Inc. is responsible for franchising in the United States. The TM Owner simply manages the intellectual property. This clear division of responsibilities may provide a more streamlined and focused approach to franchise support and brand management within each region. However, it is important for potential franchisees to understand how the Australian affiliate's experience and performance might influence or benefit the US operations.