To whom is the initial marketing spend paid for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| -- | ||||
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Initial Franchise Fee1 | $50,000 | Lump sum | Upon execution | Us |
| Initial Marketing Spend2 | $10,000 | Lump sum | Prior to opening | Approved Supplier for digital/online marketing; |
Source: Item 7 — TEM 7: ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the initial marketing spend of $10,000 is paid to an approved supplier for digital/online marketing or a third-party provider for other expenditures. This payment is a lump sum due prior to opening the Fitstop franchise.
In addition to the initial marketing spend, Fitstop expects franchisees to spend between $1,000 and $10,000 on marketing, advertising, and promotional services. These additional funds are paid as arranged to an approved supplier or other third-party providers such as a videographer.
These initial marketing expenses are part of the total estimated initial investment, which ranges from $306,000 to $823,500. Understanding to whom these payments are made is an important part of budgeting for a new Fitstop franchise.