What is the 'Local Marketing Requirement' or 'LMR' for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
the policies prescribed by us and are not in any way misleading or deceptive.
- 6.4.2 You must expend the minimum amount equal to 1% of the Gross Revenue generated by the Franchised Business during the preceding calendar month of operations to market, promote and advertise the Franchised Business within the Designated Territory (the "Local Marketing Requirement" or "LMR"). We may require that all or some portion of your LMR be expended on services/collateral that you must acquire from one (1) or more of our then-current Approved Suppliers. Upon our request, you must provide us with invoices or other proof of your monthly expenditures on local advertising and marketing. You must ensure that: (i) the Franchised Business has a dedicated phone line for use in connection with the Franchised Business only (and no other business, including any other System Business); and (ii) the Franchised Business is listed in the appropriate Internet-based directories that we designate in the Manual(s) or otherwise.
- 6.4.3 You may not advertise and promote the Franchised Business outside of the Designated Territory, unless (a) the geographic area wherein you wish to advertise is contiguous to the Designated Territory and that area has not been granted to any other System Business or System franchisee/developer, and (b) we otherwise provide our prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must adhere to a Local Marketing Requirement (LMR). This requires franchisees to spend a minimum of 1% of the gross revenue generated by their Fitstop franchise during the preceding calendar month on local marketing, promotion, and advertising within their designated territory.
Fitstop may require that all or a portion of this LMR be spent on services or collateral acquired from their approved suppliers. Franchisees must provide invoices or other proof of their monthly local advertising and marketing expenditures upon Fitstop's request. Additionally, franchisees must ensure their Fitstop location has a dedicated phone line and is listed in internet-based directories designated by Fitstop in their manuals.
Fitstop franchisees are restricted from advertising and promoting their franchise outside of their designated territory unless the area is contiguous and not already assigned to another Fitstop business, and only with Fitstop's prior written consent. This ensures that marketing efforts are focused and do not infringe on other franchisees' territories. This requirement helps maintain brand consistency and ensures that franchisees are actively promoting their Fitstop location within their local market.