If my Fitstop franchise is assigned to a regional cooperative, what am I required to do?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right to establish regional cooperatives that are comprised of a geographical market area that contains two (2) or more Franchised Businesses (whether a Franchised Business or Affiliate-owned) (each a "Cooperative"). If we assign your Franchised Business to a Cooperative we establish, you must work with the other Franchised Business owners in your Cooperative and us to develop and implement regional advertising campaigns designed to benefit all the Franchised Businesses within the geographical boundaries of the Cooperative. We have not established any Cooperatives as of the Issue Date of this Disclosure Document and have not contemplated how much a Franchised Business might be required to contribute to such a Cooperative. We will have the right to establish, modify, merge and dissolve Cooperative as we deem appropriate. Any amounts you expend on Cooperatives will be credited towards your Local Advertising Requirement.
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, Fitstop reserves the right to establish regional cooperatives. These cooperatives would be comprised of a geographical market area containing two or more Franchised Businesses. If your Fitstop franchise is assigned to one of these cooperatives, you must collaborate with other franchise owners in the cooperative and Fitstop to develop and implement regional advertising campaigns. These campaigns are designed to benefit all Fitstop franchises within the cooperative's geographical boundaries.
As of the issue date of the 2024 Disclosure Document, Fitstop has not yet established any cooperatives. The FDD does not specify how much a franchisee might be required to contribute to a cooperative. Fitstop retains the right to establish, modify, merge, and dissolve cooperatives as it deems appropriate.
Any amounts a Fitstop franchisee spends on cooperative advertising will be credited towards their local advertising requirement. This means that participation in a regional cooperative can help a franchisee fulfill their local advertising obligations, potentially streamlining their marketing efforts and budget allocation. Prospective franchisees should inquire with Fitstop about the typical structure, contribution amounts, and decision-making processes of these regional cooperatives to better understand the potential impact on their business.