What experience did Fitstop rely on to compile the additional funds estimates?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Additional Funds 4 Months Post-Opening. These figures are estimated and we cannot guarantee that you will not have additional expenses starting the business. Your costs will depend on factors such as: how well you follow the Franchise System and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for fitness services; and competition. This range, as well as out Item 7 Chart generally, does not account for any (i) the costs associated with any debt services (which are within your sole discretion), or (b) any salary or other compensation for the Franchise Operator or any other Franchise Owner. We have relied on our years of experience in the industry to compile these numbers. YOU SHOULD REVIEW THESE FIGURES CAREFULLY IN LIGHT OF LOCAL CONDITIONS AND THE LOCAL ECONOMY, AND CONSULT YOUR ACCOUNTANT.
ITEM 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
You must operate all aspects of your Franchised Business in strict conformance with the methods, standards and specifications of our System. Our methods, standards, and specifications will be communicated to you in writing through our confidential Manuals and other proprietary guidelines and writings that we prepare for your use in connection with the Franchised Business and System. We may change our System standards and specifications from time to time, as we deem appropriate or necessary in our sole discretion, and you will be solely responsible for costs associated with complying with any modifications to the System.
Approved Products and Services
You may only market, offer, sell and provide the Approved Services, as well as any Approved Products we authorize, from or through your Franchised Business using the curricula, methodologies, guidelines and overall culture that are consistent with our System standards and specifications. We will provide you with a list of our then-current Approved Services and Approved Products, along with any corresponding instruction or guidelines and/or directives for how to offer and provide the same, as part of the Manuals or otherwise in writing prior to the opening of your Franchised Business. We may update or modify this list in writing at any time.
It is important to understand that our franchisees and other System owners help ensure and guarantee the satisfaction of our customers.
Source: Item 7 — TEM 7: ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the estimates for additional funds are based on the company's experience in the industry. However, Fitstop cannot guarantee that franchisees will not have additional expenses when starting the business. These costs depend on various factors, including how well a franchisee follows the Fitstop system and procedures, their management skills, experience, business acumen, local economic conditions, the local market for fitness services, and competition.
The FDD specifies that the estimates do not account for debt services or any salary or compensation for the Franchise Operator or any other Franchise Owner. Fitstop advises prospective franchisees to carefully review these figures in light of local conditions and the local economy and to consult with their accountant.
Furthermore, the estimated investment ranges were prepared based upon and accounting for various sources of information, including the experience of Fitstop's affiliates developing two System Businesses over the past 18 months, the experience of their Affiliate Franchisor and its System franchisees operating or under development in Australia, information received from third-party Approved Suppliers, data from real estate brokers regarding current real estate and commercial leasing markets, and other due diligence. These estimates also rely on expectations and reasonable assumptions, such as franchisees securing an approved Premises, opening the Franchised Business within the prescribed timelines, ensuring the Premises is built out according to System standards, and using Approved Suppliers for certain Required Items.