Does Fitstop currently have any regional cooperatives established?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Regional Cooperatives
We reserve the right to establish regional cooperatives that are comprised of a geographical market area that contains two (2) or more Franchised Businesses (whether a Franchised Business or Affiliate-owned) (each a "Cooperative"). If we assign your Franchised Business to a Cooperative we establish, you must work with the other Franchised Business owners in your Cooperative and us to develop and implement regional advertising campaigns designed to benefit all the Franchised Businesses within the geographical boundaries of the Cooperative. We have not established any Cooperatives as of the Issue Date of this Disclosure Document and have not contemplated how much a Franchised Business might be required to contribute to such a Cooperative. We will have the right to establish, modify, merge and dissolve Cooperative as we deem appropriate. Any amounts you expend on Cooperatives will be credited towards your Local Advertising Requirement.
Franchise Advisory Council
While we are not required to do so, we may establish a Franchise Advisory Council ("FAC"). If established, we expect that such a FAC will provide advice to us on various matters, including advertising. The FAC will serve in an advisory capacity only and will have no operational or decision-making power. In the event we determine to establish an FAC, we will provide you with information related to the composition and selection of FAC members and other relevant information via the Manuals or otherwise in writing, to the extent we are required to do so by applicable laws.
H.
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, Fitstop has not yet established any regional advertising cooperatives. However, Fitstop does reserve the right to establish these cooperatives in the future, which would consist of a geographical market area containing two or more franchised businesses. If a franchisee's business is assigned to a cooperative, they must collaborate with other franchisees and Fitstop to develop and implement regional advertising campaigns.
Fitstop retains the right to establish, modify, merge, and dissolve these cooperatives as it deems appropriate. The FDD does not specify how much a franchisee might be required to contribute to a cooperative if one were established. Any amounts spent on cooperative advertising would be credited towards the franchisee's local advertising requirement.
While Fitstop is not required to do so, it may establish a Franchise Advisory Council (FAC) to provide advice on various matters, including advertising. The FAC would serve only in an advisory capacity and would not have any operational or decision-making power. If Fitstop decides to establish an FAC, it will provide franchisees with information related to the composition and selection of FAC members.