Can Fitstop establish and maintain a member database?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.7 Member Information and Ownership. Subject to any applicable laws, you must (1) collect the information from members specified in the Manual(s) or otherwise in writing by us; (2) collect member information only in the manner specified in the Manual(s) or in writing by us; (3) not otherwise store or keep member information in the form of an external document or database; and (4) provide us with all member information, in the form specified by us, at the end of each calendar month or within 24 hours after receiving a written request from us.
You acknowledge and agree that the member information is our property.
- 7.8 Customer Database. We may establish and maintain a member database to store member information.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop may establish and maintain a member database to store member information. However, franchisees have specific obligations regarding member information. Franchisees must collect specified information from members as outlined in the manuals or in writing by Fitstop, and they must collect this information only in the manner specified.
Fitstop franchisees are prohibited from storing or keeping member information in any external document or database outside of what Fitstop specifies. Franchisees must provide Fitstop with all member information in the format that Fitstop requires, either at the end of each calendar month or within 24 hours of receiving a written request from Fitstop.
This arrangement ensures that Fitstop maintains control over member data, which it considers its property. This allows Fitstop to manage and utilize the data for marketing, operational improvements, and other strategic purposes across the franchise system. Franchisees must adhere strictly to these guidelines to comply with the franchise agreement and protect member information.