What are some examples of functions a Fitstop franchisee might perform in the operation of the business?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisees who do not devote their full time and efforts to the establishment and operation of their franchised facilities may have lower Gross Revenue, higher operating costs and lesser name recognition in their areas than those franchisees who do devote their full efforts to the business. Examples of the types of functions which you might perform include supervision of employees, inventory checks, review of sales and costs, bookkeeping and all reasonable efforts to ensure smooth and efficient operations.
The Franchised Business must be directly supervised and managed by a person, identified to us who has undergone our training program. Based on his/her/their experience, we may choose to waive this requirement in our sole discretion. If you are not willing to be the full-time operator of your business, then you will be required to engage a manager and have them complete our training program (the "Designated Manager"). The Designated Manager is not required to hold an equity interest in the franchisee entity.
Any and all Designated Manager(s) must sign our then-current prescribed form of Confidentiality and Non-Competition Agreement. If and when a Designated Manager leaves his/her/their employment at your Franchised Business, you must recruit a new Designated Manager within thirty (30) days and submit the replacement's qualifications to us for our review and approval (which may be conditioned on completion of certain "Management Criteria") before substituting a new Designated Manager at any of your locations (unless you resume taking over the day-to-day operations of the Franchised Business on a full-time basis).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 40–41)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, while Fitstop encourages franchisees to actively participate in their business, it is not a requirement. Fitstop states a preference for franchisees who are committed to a hands-on approach. The document suggests that franchisees who dedicate significant time and effort to their Fitstop location may experience higher gross revenues, lower operating costs, and greater name recognition within their community.
Examples of functions a Fitstop franchisee might perform include supervising employees, conducting inventory checks, reviewing sales and costs, bookkeeping, and generally ensuring the smooth and efficient operation of the business.
Fitstop requires that the franchised business be directly supervised and managed by someone who has completed their training program. If a franchisee chooses not to be the full-time operator, they must engage a Designated Manager who has completed the training program. This Designated Manager is not required to hold an equity interest in the franchisee entity but must sign a Confidentiality and Non-Competition Agreement. If the Designated Manager leaves, the franchisee has 30 days to recruit a new manager, submit their qualifications for review and approval, and replace the departing manager, unless the franchisee resumes full-time operation of the business.