Must a Fitstop franchisee provide proof of monthly local advertising expenditures upon request?
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.
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 market and promote their franchised business at their own cost. Specifically, Fitstop requires franchisees to spend a minimum of 1% of the previous month's gross revenue on local marketing, advertising, and promotion within their designated territory.
Fitstop franchisees may be required to spend all or a portion of their Local Marketing Requirement (LMR) on services or materials acquired from Fitstop's approved suppliers. The franchisor retains the right to request invoices or other proof of monthly local advertising and marketing expenditures from the franchisee.
This requirement ensures that Fitstop franchisees are actively promoting their businesses within their local territory and adhering to the brand's marketing standards. It also allows Fitstop to monitor compliance with the LMR and ensure that franchisees are investing adequately in local marketing efforts. Franchisees should maintain accurate records of their marketing expenditures to readily provide proof of compliance when requested by Fitstop.