Is a Fitstop franchisee required to participate in any Member Loyalty Program that Fitstop establishes?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.14 Member Loyalty Program.
We may, in our discretion, establish and operate a Member Loyalty Program from time to time.
You must participate fully in any Member Loyalty Program which we decide to establish and implement.
The terms on which you will participate in the Member Loyalty Program will be set out in the Manual(s) from time to time but for the avoidance of doubt will be necessary to protect or promote our legitimate commercial interest.
You must purchase from us the cards, application forms, and other materials for use in connection with the Member Loyalty Program prior to its commencement date and as and when required in the operation of the Franchise in accordance with the Manual(s).
We may, in our reasonable discretion, by written notice to you at any time: (1) vary the terms of the Member Loyalty Program or (2) withdraw from supply the cards, application forms and other materials for use in connection with Member Loyalty Program.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must participate fully in any Member Loyalty Program that Fitstop decides to establish and implement. The specific terms of participation will be detailed in the Manual(s) and are deemed necessary to protect or promote Fitstop's legitimate commercial interests.
As part of this program, franchisees are required to purchase cards, application forms, and other materials from Fitstop for use in connection with the Member Loyalty Program. These purchases must be made prior to the program's commencement date and as needed during the operation of the franchise, as outlined in the Manual(s).
Fitstop retains the discretion to modify the terms of the Member Loyalty Program or withdraw the necessary materials, providing written notice to the franchisee. This allows Fitstop to adapt the program as needed, but also means that a franchisee's obligations and costs could change. Franchisees should stay informed of any updates to the Manual(s) to ensure compliance and understand the financial implications of the program.
This requirement is fairly common in franchising, as loyalty programs can help to build brand recognition and customer retention across the entire system. However, franchisees should carefully consider the potential costs of participating in the program, including the purchase of materials and any other associated expenses, and how these costs will impact their profitability.