Must a Fitstop franchisee regularly canvass members and potential members?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
6.4.1 You must market and promote the Franchised Business at your cost, including using your best endeavors to actively promote the Franchise and in particular must regularly canvass members and potential members and follow up any leads you receive or that we may provide. You must not arrange, authorize, or carry out any advertising in relation to the Franchise unless we approve the form and content of the advertising in writing or it is in conformance with the Manual(s). You shall ensure that all marketing and promotional activities conform to the standards of ethical marketing and the policies prescribed by us and are not in any way misleading or deceptive.
- 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 must market and promote their franchised business at their own cost. This includes actively promoting the Fitstop franchise and regularly canvassing both current members and potential new members. Franchisees are also required to follow up on any leads they receive, whether those leads are generated independently or provided by Fitstop itself. However, all advertising must be approved by Fitstop in writing or conform to the guidelines outlined in the manuals.
Fitstop franchisees must ensure that all marketing and promotional activities adhere to ethical marketing standards and the policies prescribed by Fitstop, avoiding any misleading or deceptive practices. This ensures that the brand's reputation is maintained and that customers are provided with accurate information.
In addition to these requirements, Fitstop franchisees must spend a minimum of 1% of their gross revenue from the preceding calendar month on local marketing and advertising within their designated territory. Fitstop may also require that some or all of this Local Marketing Requirement (LMR) be spent on services or collateral acquired from Fitstop's approved suppliers. Franchisees must provide invoices or other proof of their monthly local advertising and marketing expenditures upon request. Franchisees must also maintain a dedicated phone line for the Fitstop business and ensure the business is listed in designated Internet-based directories.