Is a Fitstop franchisee required to purchase materials for the Member Loyalty Program from Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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, if Fitstop establishes a Member Loyalty Program, franchisees must participate fully. As part of this participation, the franchisee is required to purchase specific materials from Fitstop. These materials include cards, application forms, and other items necessary for the Member Loyalty Program's operation.
Fitstop retains the discretion to modify the terms of the Member Loyalty Program or discontinue the supply of these materials, providing written notice to the franchisee. This allows Fitstop to adapt the program as needed, but also means the franchisee's obligations and costs could change.
This requirement ensures consistency and quality control within the Fitstop franchise system regarding the Member Loyalty Program. While it mandates a specific purchasing source, it also centralizes the program's management, potentially streamlining operations for franchisees. Franchisees should factor in the potential costs of these materials when assessing the overall investment and operational expenses of a Fitstop franchise.