How many Affiliate Businesses were used to develop the estimated investment ranges for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
General Note. The estimated investment ranges were prepared based upon and accounting for: (i) various sources of information, including (a) the experience of our affiliates developing two (2) System Businesses (each, an "Affiliate Business") over the past 18 months, (b) the experience of our Affiliate Franchisor and its System franchisees that have Franchised Businesses operating or under development in Australia, (c) information we have received from our current third-party Approved Suppliers for certain investment items or categories above, (d) information and data that we have received from various real estate brokers and/or other sources for information with respect to current real estate and commercial leasing markets, and (e) various other due diligence; and (ii) a number of expectations and reasonable assumptions that we make as part of our standard franchise offering, such as franchisee (a) securing an approved Premises and opening the Franchised Business within the prescribed timelines set forth in your Franchise Agreement (and on or before the Rent Commencement Date under the lease for the Premises), and (b) ensuring that the Premises is built out in accordance with our current System standards, specifications and processes, and (c) using our Approved Suppliers for certain Required Items as set forth in the Chart above and in Item 8 of this Disclosure Document below.
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 estimated investment ranges were developed using information from various sources. Among these sources is the experience of Fitstop's affiliates in developing two System Businesses, referred to as "Affiliate Businesses," over the past 18 months. This hands-on experience from these two affiliate businesses was used to inform the estimated investment ranges for new Fitstop franchises.
In addition to the affiliate's experience, Fitstop also considered the experience of its Affiliate Franchisor and its System franchisees operating or developing Franchised Businesses in Australia. Information from third-party Approved Suppliers for certain investment items, data from real estate brokers regarding real estate and commercial leasing markets, and other due diligence were also factored into the investment estimates.
Prospective franchisees should note that these estimates are based on certain assumptions, such as securing an approved premises, opening the Franchised Business within specified timelines, building out the premises according to Fitstop's standards, and using Approved Suppliers for required items. These factors can significantly impact the actual initial investment required.