What is the deadline for Fitstop to provide an annual accounting of the Brand Development Fund after a franchisee's written request?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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).
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, a franchisee can obtain an annual accounting of the Brand Development Fund (the "Fund") by submitting a written request to the President at Fitstop's principal place of business. Fitstop will provide this unaudited accounting within 120 days after the end of Fitstop's fiscal year.
This means that if a Fitstop franchisee wants to review how the Fund is being managed, they must make a formal written request. The accounting they receive will not be audited, so it's essentially an internal report prepared by Fitstop.
For prospective Fitstop franchisees, it's important to note that Fitstop has the right to modify or discontinue the Fund. The FDD also states that as of the fiscal year ending December 31, 2023, Fitstop had not yet established a Fund, meaning no contributions were collected or expended. Therefore, it is important for a prospective franchisee to understand the current status and future plans for the Brand Development Fund.