Is a Fitstop franchisee required to actively promote the franchise and follow up on leads?
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.
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 actively market and promote their Fitstop franchise. Specifically, franchisees must use their best efforts to actively promote the franchise, regularly canvass members and potential members, and follow up on any leads they receive, including those provided by Fitstop.
Fitstop franchisees must market and promote the franchised business at their own cost. They are also obligated to spend a minimum of 1% of the Gross Revenue generated by the franchised business during the preceding calendar month on local marketing, promotion, and advertising within their Designated Territory. This is referred to as the Local Marketing Requirement (LMR). Fitstop may require that all or a portion of this LMR be spent on services or materials acquired from approved suppliers.
Furthermore, Fitstop franchisees must obtain approval from Fitstop for any advertising materials they intend to use, ensuring they conform to ethical marketing standards and are not misleading. Franchisees must also ensure the franchised business has a dedicated phone line and is listed in designated Internet-based directories as specified in the manuals. These measures ensure consistent brand representation and effective local marketing efforts.