What must a Fitstop franchisee do to actively promote the Franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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6.4 Local Marketing and Local Marketing Requirement (or "LMR").
- 6.4.1 You must market and promote the Franchised Business at your cost, including using your best endeavors to actively promote the Franchise and in particular must regularly canvass members and potential members and follow up any leads you receive or that we may provide. You must not arrange, authorize, or carry out any advertising in relation to the Franchise unless we approve the form and content of the advertising in writing or it is in conformance with the Manual(s). You shall ensure that all marketing and promotional activities conform to the standards of ethical marketing and the policies prescribed by us and are not in any way misleading or deceptive.
- 6.4.2 You must expend the minimum amount equal to 1% of the Gross Revenue generated by the Franchised Business during the preceding calendar month of operations to market, promote and advertise the Franchised Business within the Designated Territory (the "Local Marketing Requirement" or "LMR"). We may require that all or some portion of your LMR be expended on services/collateral that you must acquire from one (1) or more of our then-current Approved Suppliers. Upon our request, you must provide us with invoices or other proof of your monthly expenditures on local advertising and marketing. You must ensure that: (i) the Franchised Business has a dedicated phone line for use in connection with the Franchised Business only (and no other business, including any other System Business); and (ii) the Franchised Business is listed in the appropriate Internet-based directories that we designate in the Manual(s) or otherwise.
- 6.4.3 You may not advertise and promote the Franchised Business outside of the Designated Territory, unless (a) the geographic area wherein you wish to advertise is contiguous to the Designated Territory and that area has not been granted to any other System Business or System franchisee/developer, and (b) we otherwise provide our prior written consent.
- 6.5 Brand Development Fund.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must market and promote their franchised business at their own cost. This includes using their best efforts to actively promote the Fitstop franchise, regularly canvassing members and potential members, and following up on any leads they receive or that Fitstop provides. All advertising must be approved by Fitstop in writing or conform to the standards outlined in the Manual(s). Franchisees must ensure that all marketing and promotional activities adhere to ethical marketing standards and Fitstop's policies, and are not misleading or deceptive.
Fitstop franchisees are required to spend a minimum of 1% of the gross revenue generated by their franchised business in the preceding calendar month on local marketing, promotion, and advertising within their designated territory. Fitstop may require that all or a portion of this Local Marketing Requirement (LMR) be spent on services or collateral acquired from Fitstop's approved suppliers. Franchisees must provide invoices or other proof of their monthly expenditures on local advertising and marketing upon Fitstop's request.
Additionally, Fitstop requires that each franchised business has a dedicated phone line solely for its use and is listed in the internet-based directories designated in the Manual(s). Franchisees are restricted from advertising and promoting their Fitstop business outside of their designated territory unless the area is contiguous and has not been granted to another Fitstop business, and only with Fitstop's prior written consent. These measures ensure consistent brand messaging and prevent market overlap between franchisees.