factual

Besides franchising, what other activities is Fitstop involved in?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

Fitstop USA, Inc. is the franchisor. To simplify matters, this document will refer to the franchisor as "we," "us," or "our." "Franchisee", "you" or "your" means the company which buys the franchise, including company's owners, partners, controlling shareholders, officers, guarantors, and managers, if any. If the owners, partners, controlling shareholders, officers, or guarantors are married and your spouse is not an owner, partner, controlling shareholder, officer, or guarantor of the franchise business, certain provisions of our Franchise Agreement will also apply to your spouse.

We incorporated in Delaware on July 22, 2022. Our principal business address is 2260 S. Centinela Ave., Suite 150, Los Angeles, CA 90064. We conduct business under our corporate name and under the primary mark FITSTOP®, as well as any and all other marks, logos, designs and names that we designate for licensing as part of our franchise system from time to time (collectively, the "Proprietary Marks").

We have identified our agents for service of process in various states in Exhibit E.

We are in the business of franchising functional fitness group training facilities that operate under the Proprietary Marks (each, a "Franchised Business"), as well as related activities related to the ownership and administration of the franchise system and franchisee network.

Parent, Affiliate(s) and Predecessors

We do not have any predecessors that require disclosure in this Item.

Our parent and sole owner, Fitstop Holdings Pty Limited (our "Parent"), is a holding company formed under the laws of Australia in October 2018 that has a principal business address at 51 Manilla St., East Brisbane Qld 4169 Australia. Except for owning us and certain affiliate entities (some of which are disclosed below), our Parent has not (a) offered or awarded franchises or licenses in any line of business, or (b) engaged in any other material business activities.

Our affiliate, Fitstop Australia Pty Ltd (the "Affiliate Franchisor"), is a company formed under the laws of Australia in 2014 that has been offering and awarding franchises for the right to own and operate a franchise under the Proprietary Marks that is substantially similar to the Franchised Business offered in this Disclosure Document. Affiliate Franchisor shares a business address with our Parent and has offered such franchises since January 2017. As of December 31, 2023, there were 125 franchises open and operating under the Proprietary Marks pursuant to an agreement with Affiliate Franchisor. The Affiliate Franchisor has not offered franchises within the United States.

Both we and Affiliate Franchisor have the right to license the Proprietary Marks in connection with our respective franchise systems pursuant to a license agreement with our affiliate, Fitstop IP Pty Limited (the "TM Owner"), an Australia company with a business address at 51 Manilla Street, East Brisbane, Queensland 4169, Australia. TM Owner holds the ownership rights associated with the Proprietary Marks and certain other System intellectual property, and licenses the same to us as disclosed more fully in Item 12 of the Disclosure 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. is in the business of franchising functional fitness group training facilities under the FITSTOP® brand. In addition to franchising, Fitstop is involved in activities related to the ownership and administration of the franchise system and franchisee network. This indicates that Fitstop manages and supports its franchisees through various administrative and operational functions. Fitstop's parent company, Fitstop Holdings Pty Limited, primarily acts as a holding company and does not engage in other material business activities besides owning Fitstop USA, Inc. and certain affiliate entities.

Fitstop's affiliate, Fitstop Australia Pty Ltd, also engages in franchising, offering franchises for businesses substantially similar to those offered by Fitstop USA, Inc. This affiliate has been offering franchises since January 2017 and, as of December 31, 2023, had 125 franchises open and operating under the Proprietary Marks, though not within the United States. Both Fitstop USA, Inc. and Fitstop Australia Pty Ltd have the right to license the Proprietary Marks through a license agreement with Fitstop IP Pty Limited, which owns the intellectual property associated with the Proprietary Marks.

In summary, besides franchising, Fitstop is involved in managing its franchise system, supporting its franchisees, and administering the network. Its parent company is primarily a holding entity, while its Australian affiliate engages in similar franchising activities outside the United States. The intellectual property rights are managed by a separate affiliate, Fitstop IP Pty Limited, which licenses the Proprietary Marks to both Fitstop USA, Inc. and Fitstop Australia Pty Ltd.

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.