Where can I find additional information about marketing for a Fitstop franchise in the FDD?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| YOUR ESTIMATED INITIAL INVESTMENT | ||||
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Initial Franchise Fee1 | $50,000 | Lump sum | Upon execution | Us |
| Initial Marketing Spend2 | $10,000 | Lump sum | Prior to opening | Approved Supplier for digital/online marketing; Third-Party Provider for other expenditures |
| Other Initial Marketing and Promotional Activities2 | $1,000 to $10,000 | As arranged | As invoiced or agreed | Approved Supplier and/or other Third-Party Providers (videographer, etc.) |
| Training-Related Costs and Expenses3 | $1,000 to $7,500 | As arranged | Prior to Opening | Third-Party Providers for Travel, Lodging, Meals and Local Transportation |
| Site Selection Assistance | $0 to $10,000 | Lump sum | Prior to opening | Approved Supplier or other Third-Party Provider |
| Security Deposit and other Pre-Opening Amounts under Lease for Approved Premises5 | $8,000 to $75,000 | As arranged between you and the landlord. | As negotiated and agreed in the lease | Third-Party Landlord |
| Design and Layout | $3,000 to $10,000 | As arranged | Prior to opening | Approved Supplier(s) and/or Other Third-Party Provider(s) |
| Operational Equipment and | $70,000 to $100,000 | Lump sum | Prior to opening | Approved Supplier(s) |
| Supplies Package6 | ||||
| Leasehold Improvements7 | $100,000 to $325,000 | As arranged | As invoiced | Third-Party Contractor and Other Third-Party Vendors/Providers |
| Signage: Exterior/Interior8 | $10,000 to $50,000 | As agreed | As invoiced | Approved Supplier(s) |
| Computer System and Required Software – Initial Costs9 | $3,000 to $7,000 | Lump sum | As invoiced and prior to opening | Approved Supplier(s) |
| Other FFE | $0 to $10,000 | As arranged | As incurred | Approved Supplier(s) and/or other Third-Party Vendor(s) |
| Utility Deposits (water, | $1,000 to $3,000 | As | Prior to opening | Utility Providers |
| electricity, gas) | incurred | |||
| Insurance Premiums | $2,000 to $10,000 | As arranged | As incurred and invoiced | Third-Party Insurance Carrier/Provider |
| Business Licenses & Permits | $500 to $10,000 | Lump sum | Prior to opening | Local, state, and/or federal government agencies |
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, Item 7 contains information regarding marketing expenses. Specifically, it mentions an "Initial Marketing Spend" of $10,000, which Fitstop directs to be spent, often through their "Approved Supplier" for online marketing.
In addition to this initial spend, Fitstop expects franchisees to spend an additional $1,000 to $10,000 on marketing, advertising, and promotional services. These services and materials must be approved by Fitstop and are intended to increase the visibility of the franchise within its designated territory. Item 9 of the FDD also contains additional information regarding marketing.
The table in Item 7 outlines the "Initial Marketing Spend" of $10,000 is paid as a lump sum prior to opening to an "Approved Supplier" for digital/online marketing or a "Third-Party Provider" for other expenditures. The "Other Initial Marketing and Promotional Activities" which range from $1,000 to $10,000 are arranged and invoiced or agreed upon with an "Approved Supplier and/or other Third-Party Providers (videographer, etc.)".