As of December 31, 2023, does Fitstop have any System franchisees to disclose in Exhibit D?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Exhibit D to this Disclosure Document contains a list of: (i) our current franchisees as of the December 31, 2023; and (ii) any franchisees who have had an outlet terminated, cancelled, not renewed or otherwise voluntarily or involuntarily ceased to do business under a franchise agreement during the most recently completed fiscal year or who have not communicated with us within 10 weeks of the application date. Please note that we did/do not have any System franchisees to disclose in Exhibit D as of December 31, 2023 or the Issue Date.
If you buy this franchise, your contact information may be disclosed to other buyers when you leave the franchise system. As a new franchise offering, we have not entered into an agreement with any System franchisee in the past three (3) fiscal years that would limit their ability to speak openly with you about their experience with us.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 47–49)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, as of December 31, 2023, Fitstop did not have any System franchisees to disclose in Exhibit D. Exhibit D typically lists current franchisees and those who have left the system within the last fiscal year. This indicates that Fitstop is a relatively new franchise system or that it has not yet entered into agreements with franchisees as of that date.
For a potential franchisee, this could mean there is limited opportunity to speak with existing franchisees to gain insights into the business. However, Fitstop states that they have not entered into agreements with any System franchisee in the past three fiscal years that would limit their ability to speak openly about their experience with Fitstop. This suggests that any future franchisees will be able to communicate freely about their experiences.
While the absence of current franchisees might raise questions, it is important to consider that Fitstop may be in its early stages of franchising. The FDD includes tables showing outlet information, including one outlet opened in 2023. Prospective franchisees should engage in thorough due diligence, including direct communication with the franchisor, to fully understand the current state and future plans of the Fitstop franchise system.