What is the meaning of 'Approved Products' in the Fitstop Franchise Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.1 We have the right to license and we administer a system (the "Franchise System") that offers and awards franchises (the "Franchise") for the right to indepenedently own and operate a fitness facility (each, a "System Business") that features, offers, sell and/or provides: (i) membership-based and other fitness classes combining strength training, nutritional information and other fitness-related instruction and training; (ii) access to various fitness and gym equipment; (iii) group fitness training and any other services that we designate or authorize in our proprietary manual(s) (the "Manual(s)") and/or otherwise in writing (collectively with subparts (i)-(ii), the "Approved Services"); and (iv) any fitness apparel, merchandise, nutritional items, branded and/or privately-labeled retail items that we designate or otherwise approve in writing (collectively, the "Approved Products").
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, 'Approved Products' are defined as any fitness apparel, merchandise, nutritional items, branded, and/or privately-labeled retail items that Fitstop designates or otherwise approves in writing. As a Fitstop franchisee, you are authorized to sell only those products that Fitstop has specifically approved.
This definition is important for several reasons. First, it ensures brand consistency across all Fitstop locations. By controlling the products that franchisees sell, Fitstop can maintain a consistent image and quality standard. Second, it allows Fitstop to potentially negotiate favorable deals with suppliers and pass those savings on to franchisees. Finally, it protects the Fitstop brand from being associated with products that do not meet its standards.
As a franchisee, you must adhere to Fitstop's pricing policies for Approved Products, including any maximum prices they set. Fitstop may also receive rebates or financial incentives from the suppliers of Approved Products, which they retain. If you want to use an alternative supplier for any products, you must submit a sample to Fitstop for approval, and they can reject the supplier if the items are unsuitable. This ensures that all products sold at your Fitstop location meet the franchisor's standards and protect the brand's reputation.
This also means that you need to be aware of any changes to the list of Approved Products, as Fitstop can modify this list at any time. Staying up-to-date with these changes is crucial to ensure you remain compliant with the Franchise Agreement and offer the correct products to your members. You are also obligated to purchase Required Items and Approved Products from suppliers that Fitstop designates.