What is the name of Fitstop's Affiliate Franchisor?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Our affiliate, Fitstop Australia Pty Ltd (the "Affiliate Franchisor"), is a company formed under the laws of Australia in 2014 that has been offering and awarding franchises for the right to own and operate a franchise under the Proprietary Marks that is substantially similar to the Franchised Business offered in this Disclosure Document. Affiliate Franchisor shares a business address with our Parent and has offered such franchises since January 2017. As of December 31, 2023, there were 125 franchises open and operating under the Proprietary Marks pursuant to an agreement with Affiliate Franchisor. The Affiliate Franchisor has not offered franchises within the United States.
Both we and Affiliate Franchisor have the right to license the Proprietary Marks in connection with our respective franchise systems pursuant to a license agreement with our affiliate, Fitstop IP Pty Limited (the "TM Owner"), an Australia company with a business address at 51 Manilla Street, East Brisbane, Queensland 4169, Australia. TM Owner holds the ownership rights associated with the Proprietary Marks and certain other System intellectual property, and licenses the same to us as disclosed more fully in Item 12 of the Disclosure Document.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–9)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the affiliate franchisor is Fitstop Australia Pty Ltd. This Australian company was formed in 2014 and has been offering franchises substantially similar to those in the U.S. since January 2017. As of December 31, 2023, Fitstop Australia Pty Ltd had 125 open and operating franchises. However, it has not offered franchises within the United States.
Both Fitstop USA, Inc. and Fitstop Australia Pty Ltd have the right to license the Proprietary Marks for their respective franchise systems. This licensing agreement is with Fitstop IP Pty Limited, which owns the intellectual property associated with the Proprietary Marks.
For a prospective franchisee, this means that while Fitstop USA, Inc. is the direct franchisor in the United States, it is affiliated with an established international brand. This could provide some assurance of a proven business model, but it's important to note that the success of Fitstop Australia does not guarantee success in the U.S. market. Franchisees should investigate the differences between the Australian and U.S. markets and how Fitstop plans to adapt its model for the U.S.