Is a Fitstop franchisee required to purchase marketing materials/services from approved suppliers for the Initial Marketing Spend?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
6.3 Initial Marketing Spend; Other Initial Marketing/Promotional Efforts.
- 6.3.1 Initial Marketing Spend. You are required to spend a minimum of $10,000 in various online and/or other marketing activities that we prescribe as part of our System and that we expect will be paid to our Approved Supplier (the "Initial Marketing Spend"). Typically, we expect that you will be required to expend these amounts 30 to 90 days prior to opening and continuing through the grand opening of your Franchised Business – as we discuss and specify prior to any opening or operation of your Franchised Business in the Manual(s) or otherwise in writing. We may require that you expend any portion of the Initial Marketing Spend on materials/services that are purchased from our Approved Supplier(s).
- 6.3.2 Other Initial Marketing/Promotional Efforts. We strongly recommend, and may require, that you expend up to an additional $10,000 on other promotional activities designed to increase the visibility of your Franchised Business within the Designated Territory prior to or around the time of your contemplated or required opening. We may provide further directives to you via the Manuals or otherwise in writing on how we sugg
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 spend a minimum of $10,000 on online and/or other marketing activities as part of the System's requirements. This expenditure is termed the "Initial Marketing Spend" and Fitstop expects it to be paid to their Approved Supplier.
The FDD specifies that Fitstop may require franchisees to expend any portion of this Initial Marketing Spend on materials or services purchased from their Approved Supplier(s). This means Fitstop has the discretion to mandate that franchisees acquire marketing materials or services exclusively from their designated suppliers.
This Initial Marketing Spend is typically expected to be expended between 30 to 90 days prior to the opening and continuing through the grand opening of the Franchised Business. Fitstop will discuss and specify these requirements prior to the opening or operation of the franchise, either in the Manual(s) or in writing. Fitstop also strongly recommends, and may require, that franchisees expend up to an additional $10,000 on other promotional activities to increase the visibility of their Franchised Business within their Designated Territory before or around the time of opening.