When are Fitstop's Fund Contributions remitted?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.5 Brand Development Fund.
We have established or expect to establish a brand development fund (the "Fund") designed to promote, advertise, market and/or otherwise develop the System, Proprietary Marks, System Business(es), Approved Services/Products and/or our brand generally.
You will be required to contribute to the Fund an amount equal to two percent (2%) of the Gross Revenue of the Franchised Business ("Fund Contributions"), which shall be remitted to us at the same time and in the same manner as your Royalty Fees (unless we designate another method upon at least 30 days' prior written notice via the Manual(s) or otherwise).
All Fund Contributions are non-refundable upon payment, and we will account separately for all sums paid to the Fund.
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 contribute to the brand development fund. This contribution is equal to two percent (2%) of the Gross Revenue generated by the Franchised Business.
The Fund Contributions are remitted to Fitstop at the same time and in the same manner as the recurring Royalty Fees. However, Fitstop retains the right to designate another method for remitting Fund Contributions, provided they give at least 30 days' prior written notice via the Manual(s) or otherwise.
All Fund Contributions are non-refundable upon payment, and Fitstop will account separately for all sums paid to the Fund. This means that once a franchisee has paid their contribution, they cannot get it back, and Fitstop is responsible for keeping track of all the money that goes into the fund.