What evidence is a Fitstop franchisee required to furnish to Fitstop to assure conformance with the Franchise System?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
records. Such visits shall be during your normal business hours and will take place at the Franchise unless the Parties agree otherwise.
- 11.3.5 We have the right to visit, inspect, observe, and report on the operation of the Franchised Business, with or without notice to you, at such times, with such frequency, and for such durations as we may determine in our sole discretion. You shall ensure that your employees cooperate fully with our representatives visiting the Franchised Business operations . You agree to furnish us with such evidence as we may request, from time to time, for the purpose of assuring that you are conforming with the Franchise System. You shall cooperate with any and all other evaluation programs that we may implement.
- 11.3.6 You shall maintain communications with us and with the members that you are servicing.
- 11.3.7 You shall, within twenty four (24) hours of your receipt of a complaint from us or a member that you are servicing, remedy that complaint and provide documentation to us no less than seventy two (72) hours thereafter demonstrating that you have remedied such complaint to our satisfaction.
- 11.3.8 You shall have installed in the Premises, at your cost, all required components of the Computer System and all Required Software;
- 11.3.9 Prior to operating the Franchise, you shall duly execute any associated document with this Agreement and procure the execution of any guarantees required by us and under any lease.
- 11.3.10 Prior to the Effective Date, you shall have fully and fairly disclosed to us in writing all facts concerning your qualification to be a franchisee, including your financial position and past business history, which could reasonably be considered relevant to our decision to grant the Franchise to you.
- 11.3.11 You must cooperate with other Franchise System franchisees and/or System Business owners as we direct in the Manuals or otherwise in writing, including without limitation, all policies and procedures set forth with respect to (a) Members and their corresponding membership contracts, and (b) any Member reciprocity, loyalty and/or reward programs we determine to establish, implement or otherwise administer.
- 11.3.12 Employment Law Compliance, Audit, and Self-Certification. Without limiting the other provisions contained herein, if we reasonably request you to do so, you must allow our representative (including an accountant, auditor or other third party engaged by us), to inspect or audit, and copy your payroll records, employee entitlements or other related labor or employment records, whether located on the Premises or elsewhere or stored electronically. Our reasonable costs in undertaking an audit under this section will be paid for by you. You must (a) immediately comply and cooperate with any audit or investigation undertaken by any employment regulatory authority or its agents or by us; and (b) immediately
on becoming aware of an audit or investigation undertaken by any employment regulatory authority, advise us; and (c) at our request, provide us with all relevant information and documents. In addition to the other obligations in this section, you will certify to us on an annual basis and by a date advised by us, that you are in compliance with all applicable workplace laws.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee must furnish evidence to ensure they are conforming with the Fitstop franchise system. Fitstop has the right to visit the premises to observe the operation of the franchised business, with or without notice. During these visits, the franchisee must provide any information, reports, accounts, books, records, orders, receipts, statements, and access to the franchise's computers and computer records as requested by Fitstop representatives.
Furthermore, Fitstop requires franchisees to remedy complaints from Fitstop or members within 24 hours of receipt and provide documentation within 72 hours demonstrating the resolution of the complaint to Fitstop's satisfaction. Franchisees must also have all required components of the computer system and all required software installed in the premises at their own cost. They must also adhere to Fitstop's social media policy as described in the manuals, and any proposed social media activity not conforming to the manuals must be approved in writing by Fitstop in advance.
Fitstop also requires franchisees to use specific telephone and communication systems, computer hardware and software, and to upgrade these systems as directed by Fitstop. Franchisees must also participate fully in any Member Loyalty Program that Fitstop establishes, purchasing the necessary materials from Fitstop. These measures enable Fitstop to monitor and maintain the standards of the franchise system, ensuring consistency and quality across all locations. This level of oversight is typical in franchising, as the franchisor has a vested interest in protecting the brand and ensuring customer satisfaction.