Must a Fitstop franchisee participate in promotional program initiatives and campaigns?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ied in the Franchise Agreement.
You will be obligated to offer and sell any new or replacement products and/or services we designate, and you must participate in all local, regional and promotional program initiatives and campaigns adopted by us in which we require you to participate. We have the right to designate which of our franchisees may, or will be required to, participate in new product or service tests, new or modified product or service offerings and other programs and initiatives that we may, from time to time, develop. If we designate you for participation in any such program, initiative or campaign, you must participate when and as required by us. There are no limits on rights to require you to offer and sell those new products or to participate in those programs, initiatives and campaigns.
ITEM 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
The table below briefly summarizes certain important provisions of the franchise agreement and related agreements. You should read the complete provisions in the documents attached to this disclosure document.
| PROVISION | SECTION IN | SUMMARY | |
|---|---|---|---|
| FRANCHISE OR OTHER AGREEMENT | |||
| a. Length of the franchise term | Section 2.1 | Initial term of 10 years | |
| b. Renewal or extension of the term | Section 14 | Franchisee will have the right to seek renewal of the franchise rights for up to two (2) consecutive renewal terms | |
| c. Requirements for franchisee to | Section 14 | The Franchisor will not unreasonably withhold its | |
| renew or extend | consent to a request for a renewal of the Franchise |
| d. Termination by franchisee | N/A | No early termination by you.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 41–42)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are obligated to participate in promotional program initiatives and campaigns. Fitstop requires franchisees to participate in all local, regional, and promotional program initiatives and campaigns that Fitstop adopts. Fitstop also has the right to designate which franchisees must participate in new product or service tests, new or modified product or service offerings, and other programs and initiatives that Fitstop may develop. If designated, franchisees must participate as required by Fitstop. There are no limits on Fitstop's right to require franchisees to offer and sell new products or participate in these programs.
Fitstop may develop general marketing, advertising, or promotional activities or campaigns for all franchises, and franchisees must comply with the terms and actively participate in all sales, marketing, or promotional campaigns, programs, or activities conducted or reasonably required by Fitstop. Franchisees have access to marketing, promotional, and presentation material, including template emails, scripts, and presentation packs, via the online system and manuals. Franchisees must fully cooperate with Fitstop in connection with, and participate in, all of Fitstop's market research programs.
Fitstop pays for these campaigns, programs, and activities using the marketing fees paid by franchisees, but Fitstop reserves the right to request additional payments from franchisees upon reasonable demand. This means that while the standard marketing fees cover most promotional activities, franchisees might need to contribute more funds for specific campaigns. Franchisees must also participate fully in any Member Loyalty Program that Fitstop decides to establish and implement, with the terms of participation set out in the manuals. Franchisees must purchase the necessary materials for the Member Loyalty Program from Fitstop.
These requirements ensure a consistent brand image and service quality across all Fitstop locations, but franchisees should be prepared to allocate time and potentially additional funds for these marketing and promotional activities. Franchisees should inquire about the typical frequency and cost of these additional payments to better understand their financial obligations.