What is the Fitstop franchisee's obligation regarding adherence to the Fitstop Franchise System?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
1.5 The Parties and any third party body which the Parties may call upon to interpret this Agreement shall interpret the provisions of this Agreement to give effect to the intent of this Agreement to strictly adhere to and act in conformity with the System, as it now exists and as we may modify them from time to time via the Manuals or other prior written notice.
11.1 As this Agreement notes herein, we have expended significant time and resources developing operating procedures, methods, techniques, and or processes that encompass the Franchise System and have expended significant time and resources causing said Franchise System to have value.
11.2 You shall not appropriate, use, or duplicate the Franchise System, or any portion thereof, for use at any other similar business and you shall not disclose or reveal any portion of the Franchise System to a non-franchisee other than to your employees as an incident of their training.
11.3 Critical to the success of the Franchise System is the adherence by you to our brand standards and policies that provide for the uniform operation of all franchises. The working relationship with us in the conduct of the Franchise, your accountability for performance of the obligations this Agreement contains, and your adherence to the Franchise System are thus necessary to the success of the Franchise. Based thereon, the Parties agree that compliance with the Franchise System requires the following:
11.3.1 You are either a corporation or a limited liability company, as indicated on the Franchise Summary, duly incorporated or formed, validly existing and in good standing, under the laws of its state of incorporation or formation, as indicated on the Franchise Summary. You certify and warrant that all owners, shareholders, members, managers, partners, officers, and directors are listed in the attached Schedule 1.
11.3.2 You shall hire and train sufficient numbers of personnel to adequately handle the Franchise and to provide courteous and capable assistance to your customers. We may, when we consider it necessary, engage a Mystery Shopper to evaluate the conduct of the Franchise.
11.3.3 You shall, within twenty four (24) hours of receipt of notice from us, correct any defects, deficiencies, or unsatisfactory conditions in the appearance or conduct of the Franchise.
You shall establish and maintain an image and reputation for the Franchise consistent with the standards set forth in this Agreement, the Manual(s), and as otherwise specified by us.
- 11.3.4 We may send a representative or representatives to visit the Premises at such times as we may determine in our sole and absolute discretion.
- 6.13 Social Media Use and Participation. You must adhere to our social media policy as described more fully in the Manual(s).
Any social media activity proposed to be undertaken by you that is not in conformance with the Manual(s) must be approved in writing by us in advance.
- 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.
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).
- ©2024 Fitstop USA, Inc. 6.15 Ongoing Consultation. We will make staff available to you for consultation on operations, advertising, and promotion, and administration, as we determine appropriate in our discretion.
We will provide continuing assistance to you in the development and operation of the Franchise with scheduled meetings which may occur weekly, monthly, and/or quarterly with dedicated business performance coaches.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must strictly adhere to and act in conformity with the Fitstop system. This encompasses operating procedures, methods, and techniques that Fitstop has developed. Franchisees cannot use the Fitstop system or any part of it for any other similar business, nor can they disclose any part of the system to non-franchisees, except for employee training purposes.
Compliance with the Fitstop system is critical for the success of all franchises. Franchisees must maintain brand standards and policies to ensure uniform operation across all locations. This includes being a properly formed corporation or LLC in good standing, hiring and training enough staff to handle the franchise adequately, and correcting any deficiencies in the franchise's appearance or conduct within 24 hours of receiving notice from Fitstop. Franchisees must also maintain an image and reputation consistent with the standards set forth in the franchise agreement and manuals.
Fitstop may send representatives to visit the premises to ensure compliance. Franchisees must also adhere to Fitstop's social media policy, and any proposed social media activity not conforming to the manuals requires written approval from Fitstop. Franchisees must participate fully in any member loyalty program that Fitstop establishes, purchasing the necessary materials from Fitstop. Fitstop will provide ongoing consultation on operations, advertising, promotion, and administration, with scheduled meetings with dedicated business performance coaches.