Must a Fitstop franchisee list the Franchised Business in Internet-based directories?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to list their Fitstop business in specific Internet-based directories. This requirement is part of the broader local marketing efforts that Fitstop franchisees must undertake.
Specifically, franchisees must ensure that "the Franchised Business is listed in the appropriate Internet-based directories that we designate in the Manual(s) or otherwise." This means Fitstop specifies which online directories the franchisee must use to list their business. The directories are outlined in Fitstop's operations manual, or the franchisor will otherwise inform the franchisee of the required directories.
This listing is part of the franchisee's local marketing requirement, where they must spend a minimum of 1% of the gross revenue generated by the Franchised Business during the preceding calendar month. This expenditure is dedicated to marketing, promoting, and advertising the Fitstop business within the Designated Territory. Fitstop may also require that these marketing funds be spent on services or materials acquired from approved suppliers. This ensures brand consistency and quality in marketing efforts.