How is the minimum amount for the Fitstop Local Marketing Requirement (LMR) calculated?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to allocate a minimum amount for local marketing. This Local Marketing Requirement (LMR) is calculated as 1% of the Gross Revenue generated by the Fitstop franchise during the preceding calendar month of operations.
Fitstop may require that franchisees spend all or a portion of their LMR on services or collateral acquired from their approved suppliers. Franchisees must provide Fitstop with invoices or other proof of their monthly expenditures on local advertising and marketing upon request.
This requirement ensures that franchisees actively promote their Fitstop location within their designated territory. It also gives Fitstop some control over how those marketing funds are spent, as they can mandate the use of specific approved vendors. Franchisees should factor this ongoing marketing expense into their financial projections.