How often are Fitstop's Brand Development Fund Contributions remitted?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.5 Brand Development Fund.
We have established or expect to establish a brand development fund (the "Fund") designed to promote, advertise, market and/or otherwise develop the System, Proprietary Marks, System Business(es), Approved Services/Products and/or our brand generally.
You will be required to contribute to the Fund an amount equal to two percent (2%) of the Gross Revenue of the Franchised Business ("Fund Contributions"), which shall be remitted to us at the same time and in the same manner as your Royalty Fees (unless we designate another method upon at least 30 days' prior written notice via the Manual(s) or otherwise).
All Fund Contributions are non-refundable upon payment, and we will account separately for all sums paid to the Fund.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must contribute to the Brand Development Fund. This contribution is equal to two percent (2%) of the Franchised Business's Gross Revenue. These Fund Contributions are remitted at the same time and in the same manner as the franchisee's Royalty Fees.
Typically, franchise royalties are paid weekly or monthly, so a prospective Fitstop franchisee can expect to remit the Brand Development Fund contribution on a similar schedule. The FDD does state that Fitstop can designate another method of remittance with at least 30 days prior written notice via the Manual(s) or otherwise.
The Brand Development Fund is used by Fitstop to promote, advertise, market, and develop the System, Proprietary Marks, System Businesses, Approved Services/Products, and the brand in general. All Fund Contributions are non-refundable upon payment, and Fitstop will account separately for all sums paid into the Fund.