If Fitstop creates purchasing or distributing cooperatives in the future, is Fitstop obligated to ensure that all franchisees participate in those cooperatives?

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop does not currently have any purchasing or distributing cooperatives. However, Fitstop reserves the right to create such cooperatives in the future. The FDD does not state whether Fitstop is obligated to ensure that all franchisees participate in those cooperatives if they are created.

However, the FDD does state that Fitstop may negotiate purchase arrangements with designated and Approved Suppliers on behalf of the System. Fitstop may establish strategic alliances or preferred vendor programs with suppliers that are willing to supply some products, equipment, or services to some or all the System Businesses. If Fitstop does establish those types of alliances or programs, they may limit the number of approved suppliers with whom franchisees may deal, designate sources that franchisees must use for some or all products, equipment and services, and refuse to approve proposals from franchisees to add new suppliers if Fitstop believes that approval would not be in the best interests of the System.

A prospective franchisee should inquire with Fitstop about the specific terms and conditions of any future purchasing or distributing cooperatives, including whether participation will be mandatory and what the implications of non-participation would be. It would also be prudent to understand how these cooperatives might affect the franchisee's ability to source products and services independently and what recourse they would have if the cooperative's offerings are not competitive or suitable for their business needs.