What is the definition of 'Fund' for a Fitstop franchise?
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.
- 6.6 System Marketing Material and/or Promotional Campaigns. We will direct all advertising programs and have sole discretion to approve or disapprove the creative concepts, materials, and media used in the programs.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the 'Fund' refers to the brand development fund. This fund is designed to promote, advertise, market, and develop the Fitstop system, proprietary marks, System Businesses, approved services and products, and the brand in general.
As a Fitstop franchisee, you are required to contribute to this fund. The contribution amount is equal to two percent (2%) of the Gross Revenue generated by your Franchised Business. These Fund Contributions are remitted at the same time and in the same manner as your Royalty Fees, unless Fitstop designates another method with at least 30 days' prior written notice via the Manual(s) or otherwise.
It's important to note that all Fund Contributions are non-refundable upon payment. Fitstop will account separately for all sums paid into the Fund. Fitstop has sole discretion to administer the marketing fees.
Fitstop also directs all advertising programs and has sole discretion to approve or disapprove the creative concepts, materials, and media used in the programs. Franchisees are generally required to use only advertising and advertising materials provided by Fitstop, ensuring brand consistency. If a franchisee's advertising campaign deviates from the Manual(s), they must submit their plans and materials to Fitstop for approval at least 30 calendar days before publication.