Does the Fitstop franchise agreement state that the valuable consideration includes specialized training?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.4 You agree and acknowledge that: (i) you will pay all fees and other amounts payable by you as set out in this Agreement as and when required in connection with the Franchised Business; and (ii) the payments of any amounts to us constitute reasonable consideration for the franchise and other rights you are awarded in connection with your Franchised Business during the term hereof.
Section 4: Training: Initial Training Program and Ongoing Training
- 4.1 We have expended significant time and resources developing operating procedures, methods, techniques, and or processes that are not generally known to the public that are critical to the Franchise System. We convey this information to you through multiple means including through our training.
- 4.2 You agree to enroll in the training at our headquarters or at such other training center we designate within 14 calendar days of the Effective Date of this Agreement ("Initial Training Program"),
which we will provide to you and up to 2 additional individuals – including any individual you designate to manage the day-to-day operations of the Franchised Buisness (a "General Manager" or "Designated Manager") – without charging any Traiing Fee, provided you and, if applicable, your General Manager attend and complete all components of the Initial Training Program to our satisfaction at the same time prior to (a) the opening your Franchised Business, or (b) otherwise providing the Approved Services and/or Approved Products in any manner.
- 4.3 If, at any time, you have a change in your Franchise Operator and/or any General Manager in the future, such individual must enroll in, attend and successfully complete the requisite components of the Initial Training Program.
We have the right to charge our then-current Training Fee in connection with any training that is provided under this Section.
4.4 You must ensure that any Franchised Business personnel that you wish to provide any kind of fitness training/instruction, classes or any other Approved Services that involve fitness training (each, an "Authorized Instructor") participates in and successfully completes our proprietary training program for such instructors (the "Instructor Training") prior to providing any of such Approved Services at or in connection with the Franchised Business.
©2024 Fitstop USA, Inc. 7.5 We claim property rights in all the information about the operational, sales, promotional methods and techniques, and marketing methods and techniques of the Franchise System.
We claim proprietary trade secret rights in information like lists and files, and other compilations of information pertaining to the Franchise System, which information includes (a) our manuals and forms, the information contained and compiled in the manuals and forms, and the updates and memoranda relating to the manuals and forms; (b) names of our agents, suppliers, and customers, and their requirements, specifications, and preferences; (c) the contractual arrangements between us and our agents, suppliers, and customers; (d) the financial details (including but not limited to credit and discount terms) of our relationship with our agents, suppliers, or customers; (e) the names of prospective customers and their requirements, specifications, and preferences; (f) information concerning the remuneration paid by us to our employees; (g) our computer software and any part of its coding; (h) information concerning and presented at our meetings; (i) security and access information; (j) information provided through initial and ongoing specialized training; (k) our business plans and strategies; and (l) similar information.
- ©2024 Fitstop USA, Inc. 4.8 You shall pay all traveling, living, compensation, or other expenses you, your General Manager and/or other personnel incur in connection with the initial training, supplementary trainings,
seminars, meetings, conferences and annual conventions. None of the fees, expenses, or charges associated with the initial training, supplementary trainings, seminars, meetings, conferences, and annual conventions are refundable.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchise agreement specifies that the payment of amounts to Fitstop constitutes reasonable consideration for the franchise and other rights awarded in connection with the Franchised Business during the term of the agreement. While the agreement does not explicitly state that specialized training is part of the valuable consideration, it does mention that Fitstop conveys critical information through training, utilizing operating procedures, methods, techniques, and processes not generally known to the public.
Fitstop requires franchisees to enroll in an Initial Training Program within 14 calendar days of the agreement's effective date. This program is provided without a Training Fee for the franchisee and up to two additional individuals, such as a General Manager, provided they complete all components of the training to Fitstop's satisfaction before opening the Franchised Business or providing approved services and products. If there is a change in the Franchise Operator or General Manager, the new individual must also enroll in and complete the Initial Training Program, and Fitstop reserves the right to charge a Training Fee for this subsequent training.
Furthermore, any personnel intended to provide fitness training or instruction must participate in and successfully complete Fitstop's proprietary Instructor Training before offering such services at the Franchised Business. Fitstop also claims proprietary rights in all information about the operational, sales, promotional methods, and techniques of the Franchise System, including information provided through initial and ongoing specialized training. Franchisees are responsible for all expenses incurred in connection with initial training, supplementary training, seminars, meetings, conferences, and annual conventions, and these fees are non-refundable.