edge_case

What happens if Fitstop modifies a Fitstop franchisee's advertising plans and advertising materials?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

Moreover, we can, at our discretion, adopt such advertising plans or advertising materials and use them for our own benefit or disseminate them for use by other franchisees.

  • ©2024 Fitstop USA, Inc. 6.1 Marketing, Advertising and Promotion Generally. We may develop general marketing, advertising or promotional activities or campaigns for all franchises in the network including the Franchise. You must comply with the terms of and actively participate in all sales, marketing, or promotional

campaigns, programs or activities conducted, or reasonably required, by us. You will have access to marketing, promotional, and presentation material including template emails, scripts, presentation packs via the online system and Manual(s). You shall fully cooperate with us in connection with, and participate in, all of our market research programs. We will pay the costs of such campaigns, programs, and activities using the Marketing Fees paid by you and other franchisees but we reserve the right to request additional payments from you and other franchisees upon reasonable demand.

6.2 Use of Prescribed Materials. You must display on or about the premises only those signs, posters, and other advertising material we approve. You must maintain all signs, posters and other advertising material in a clean and satisfactory condition and good state of repair. Without prejudice to any other remedy available, we may, through our employees and agents, remove from the premises any printed matter, signs, posters, or other advertising material which we have not approved or which is not in a clean or satisfactory condition and state of repair.

  • 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.

You must comply with our directions in relation to such activity and if the relevant social media activity is not removed after being directed by us to be so removed, you authorize us to remove any social media activity that is not approved or authorized by us.

  • 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.

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.

  • ©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.

  • 12.4.5 Pricing Policies. You shall comply with any pricing policies and guidelines which we reasonably notify you of from time to time and we are lawfully able to impose including policies under which we specify a maximum price for the Approved Products or services.

Where reasonably necessary to protect our legitimate commercial interest, we may change our recommended or maximum retail prices, charges, discounts relating to or affecting any of the Approved Products or services and issue new or changed or modified recommended or maximum price lists upon notice.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has the discretion to adopt advertising plans or materials and use them for their own benefit or share them with other franchisees.

Fitstop may develop marketing, advertising, or promotional activities for all franchises, and franchisees must comply with and participate in these activities. Franchisees gain access to marketing materials like template emails and presentation packs through the online system and manuals. Fitstop pays for these campaigns using the Marketing Fees collected from franchisees but can request additional payments from franchisees if needed.

Fitstop requires franchisees to use only approved signs, posters, and advertising materials on the premises, maintaining them in good condition. Fitstop can remove unapproved or poorly maintained advertising materials. Franchisees must adhere to Fitstop's social media policy, and any social media activity not conforming to the manuals requires written approval. Fitstop can direct franchisees to remove non-approved social media activity and may remove it themselves if the franchisee does not comply. Fitstop may also establish and operate a Member Loyalty Program, in which franchisees must participate fully, purchasing necessary materials from Fitstop. Fitstop can change the terms of the Member Loyalty Program or withdraw materials with written notice.

Fitstop staff are available for consultation on operations, advertising, promotion, and administration, with scheduled meetings with business performance coaches. Fitstop may also notify franchisees of pricing policies and guidelines, including maximum prices for approved products or services, and can change recommended or maximum retail prices with notice to protect their commercial interests. These stipulations allow Fitstop to maintain brand consistency and control over marketing and operational standards across all franchise locations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.