To whom should a Fitstop franchisee send a written request for an accounting of the Brand Development Fund?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, any Fund Contributions are payable to us. We have the right to establish in the future a non-profit corporation or other business entity to collect Fund advertising contributions from our Franchisees. The Fund is administered by our accounting and marketing personnel under our direction. We may have the Fund borrow from us or other lenders to cover any Fund deficits. We may have the fund invest any surplus for the Fund's future use. You will be able to obtain an accounting annually upon written request to our President at our principal place of business 120 days after our latest fiscal year end. We claim no power to require that advertising cooperatives be formed, changed, dissolved or merged. (Franchise Agreement - Section 9.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee can obtain an annual accounting of the Brand Development Fund by submitting a written request to the President at Fitstop's principal place of business. This request can be made 120 days after the end of Fitstop's latest fiscal year.
This means that Fitstop franchisees have a defined process for requesting information about how the Brand Development Fund is being managed and spent. The 120-day window after the fiscal year-end provides Fitstop with time to compile the accounting information. The franchisee must make the request in writing to the President, ensuring a formal record of the request.
It's important to note that the accounting provided to the franchisee is unaudited, unless Fitstop chooses to have the fund audited. Franchisees should be aware that Fitstop has the right to modify or discontinue the Brand Development Fund at its discretion. As of the FDD's issue date, Fitstop had not yet established a Brand Development Fund and had not collected or expended any fund contributions for the fiscal year ending December 31, 2023. Therefore, it is important for prospective franchisees to confirm the current status of the fund and its contribution requirements.