To whom are Brand Development Fund Contributions currently payable for Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, any Fund Contributions are payable to us. We have the right to establish in the future a non-profit corporation or other business entity to collect Fund advertising contributions from our Franchisees. The Fund is administered by our accounting and marketing personnel under our direction. We may have the Fund borrow from us or other lenders to cover any Fund deficits. We may have the fund invest any surplus for the Fund's future use. You will be able to obtain an accounting annually upon written request to our President at our principal place of business 120 days after our latest fiscal year end. We claim no power to require that advertising cooperatives be formed, changed, dissolved or merged. (Franchise Agreement - Section 9.)
We will not be required to spend any of your Fund Contributions in the Designated Territory you are granted under your Franchise Agreement, and we will provide you with an unaudited accounting of the Fund within 120 days after our fiscal year end (upon your written request). We are not required to have the Fund audited, but we may do so and use the Fund Contributions to pay for such an audit. If we do not spend all Fund Contributions in a given year, any excess funds will rollover into the Fund for use during the following year. We will have the right to modify or discontinue the Fund (if established), as we deem appropriate in our sole discretion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Brand Development Fund contributions are currently payable to Fitstop. However, Fitstop retains the right to establish a non-profit corporation or other business entity in the future to collect these contributions from franchisees. The Brand Development Fund is managed by Fitstop's accounting and marketing personnel under their direction.
Fitstop may also have the Fund borrow money from them or other lenders to cover any deficits, or invest any surplus for future use. Franchisees can obtain an annual accounting of the Fund by submitting a written request to Fitstop's President at their principal place of business, 120 days after the end of Fitstop's fiscal year.
Fitstop is not obligated to spend any of a franchisee's Fund contributions in their designated territory. They will provide an unaudited accounting of the Fund within 120 days after their fiscal year end upon written request. Fitstop is not required to have the Fund audited, but they may choose to do so and use Fund contributions to cover the costs. Any excess funds not spent in a given year will roll over for use in the following year. Fitstop has the right to modify or discontinue the Fund as they deem appropriate in their sole discretion.