Must a Fitstop franchisee comply with any pricing policies and guidelines that Fitstop reasonably notifies them of?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.4.5 Pricing Policies. You shall comply with any pricing policies and guidelines which we reasonably notify you of from time to time and we are lawfully able to impose including policies under which we specify a maximum price for the Approved Products or services.
Where reasonably necessary to protect our legitimate commercial interest, we may change our recommended or maximum retail prices, charges, discounts relating to or affecting any of the Approved Products or services and issue new or changed or modified recommended or maximum price lists upon notice.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must comply with the pricing policies and guidelines that Fitstop reasonably communicates to them. These policies may include setting a maximum price for approved products or services.
Fitstop retains the right to modify recommended or maximum retail prices, charges, and discounts related to approved products or services when it is deemed reasonably necessary to protect their legitimate commercial interests. Fitstop will issue new or modified price lists to franchisees with notice of these changes.
This means that while franchisees have some autonomy in their pricing, Fitstop can exert control over pricing to maintain brand consistency and competitiveness across the franchise system. Franchisees need to stay informed of any pricing updates from Fitstop and implement them accordingly.
It is important for prospective Fitstop franchisees to understand these pricing policies and how they might affect their profitability. Franchisees should discuss with Fitstop what factors are considered when setting or changing prices and how much flexibility they will have in setting their own prices.