What is the Brand Development Fund for Fitstop designed to promote?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.5 Brand Development Fund.
We have established or expect to establish a brand development fund (the "Fund") designed to promote, advertise, market and/or otherwise develop the System, Proprietary Marks, System Business(es), Approved Services/Products and/or our brand generally.
You will be required to contribute to the Fund an amount equal to two percent (2%) of the Gross Revenue of the Franchised Business ("Fund Contributions"), which shall be remitted to us at the same time and in the same manner as your Royalty Fees (unless we designate another method upon at least 30 days' prior written notice via the Manual(s) or otherwise).
All Fund Contributions are non-refundable upon payment, and we will account separately for all sums paid to the Fund.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Brand Development Fund is designed to promote, advertise, market, and develop several aspects of the Fitstop system. These include the System itself, the Proprietary Marks, System Businesses, Approved Services and Products, and the Fitstop brand in general.
Fitstop franchisees are required to contribute to this fund, with contributions set at two percent of the Gross Revenue of the Franchised Business. These contributions are remitted at the same time and in the same manner as the franchisee's Royalty Fees, unless Fitstop designates another method with at least 30 days' prior written notice. All contributions to the Fund are non-refundable upon payment, and Fitstop will account separately for all sums paid into the Fund.
Fitstop retains sole discretion to administer the marketing fees and to approve or disapprove the creative concepts, materials, and media used in advertising programs. Franchisees are generally required to use only advertising and advertising materials provided by Fitstop, although franchisees can submit their own advertising plans and materials for approval at least 30 days prior to publication. Fitstop may then adopt and use these materials for their own benefit or disseminate them for use by other franchisees.