How often is the Fitstop Fund Contribution billed and collected?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.5 Fund Contribution(s). You shall contribute to our brand development Fund in an amount equal to two percent (2%) of the Gross Revenue generated by the Franchised Business, which shall be billed and collected at the same time and manner as your recurring Royalty Fee under Section 13.4 above (your "Fund Contribution").
We may adminster and use the Fund for any and all activities we determine appropriate to promote, market, advertise and/or otherwise develop the System, Proprietary Marks, System Business locations, Approved Services/Products and/or our brand generally, as we determine appropriate in our discretion.
You acknowledge that we are not required to expend any particular portion of the Fund or your Fund Contributions on marketing or other services that are allocated specifically to your Designated Territory.
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, with the contribution being 2% of the Franchised Business's Gross Revenue. This Fund Contribution is billed and collected at the same time and in the same manner as the recurring Royalty Fee.
The Fund is used by Fitstop to promote, market, advertise, and develop the System, Proprietary Marks, System Business locations, Approved Services/Products, and the brand in general. Fitstop has the discretion to decide how the Fund is used.
Notably, Fitstop is not required to spend any specific portion of the Fund or the franchisee's contributions on marketing or services specifically allocated to the franchisee's Designated Territory. This means that while franchisees contribute to the fund, they may not directly benefit from it in their specific location.