How can a Fitstop franchisee obtain an accounting of the Brand Development Fund?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
for the Fund's future use. You will be able to obtain an accounting annually upon written request to our President at our principal place of business 120 days after our latest fiscal year end. We claim no power to require that advertising cooperatives be formed, changed, dissolved or merged. (Franchise Agreement - Section 9.)
We will not be required to spend any of your Fund Contributions in the Designated Territory you are granted under your Franchise Agreement, and we will provide you with an unaudited accounting of the Fund within 120 days after our fiscal year end (upon your written request). We are not required to have the Fund audited, but we may do so and use the Fund Contributions to pay for such an audit.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee can obtain an annual accounting of the Brand Development Fund by submitting a written request to the President at Fitstop's principal place of business. This request must be made 120 days after the end of Fitstop's latest fiscal year.
It's important to note that the accounting provided will be unaudited unless Fitstop chooses to have the fund audited, in which case the costs of the audit can be paid from the fund contributions. The FDD also clarifies that Fitstop is not obligated to spend any of a franchisee's fund contributions specifically within their designated territory.
As of the issuance date of the 2024 FDD, Fitstop had not yet established a Brand Development Fund and therefore had not collected or expended any fund contributions for the fiscal year ending December 31, 2023. This means that while the mechanism for requesting an accounting is defined, franchisees should confirm the fund's establishment and contribution requirements with Fitstop to understand the current financial practices.