How does Fitstop pay for marketing campaigns, programs, and activities?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
6.1 Marketing, Advertising and Promotion Generally. We may develop general marketing, advertising or promotional activities or campaigns for all franchises in the network including the Franchise. You must comply with the terms of and actively participate in all sales, marketing, or promotional
campaigns, programs or activities conducted, or reasonably required, by us. You will have access to marketing, promotional, and presentation material including template emails, scripts, presentation packs via the online system and Manual(s). You shall fully cooperate with us in connection with, and participate in, all of our market research programs. We will pay the costs of such campaigns, programs, and activities using the Marketing Fees paid by you and other franchisees but we reserve the right to request additional payments from you and other franchisees upon reasonable demand.
- 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.
- 6.6 System Marketing Material and/or Promotional Campaigns. We will direct all advertising programs and have sole discretion to approve or disapprove the creative concepts, materials, and media used in the programs.
Based thereon, we will have sole discretion to administer the marketing fees this Agreement describes herein.
Subject to the exceptions this Agreement identifies and the Manual(s), you shall use only advertising and advertising materials we provide.
Where your advertising campaign is not in conformance with the Manual(s), you will submit to us all advertising plans and advertising materials of any type, including, but not limited to, any digital media communication methods such as websites, blogs, instant message services, social media sites (i.e., Facebook, Twitter, Instagram, TikTok) and any comparable digital media communications at least 30 calendar days prior to publication, including any advertising on the internet, for our approval which we may grant or withhold in our sole judgment or modify at our discretion.
- 13.6 Annual Conference Contribution(s). You may be required to remit to ua an amount equal to $150 per month as a contribution to defray the costs associated with any annual conference we determine to establish and conduct for System Business owners (an "Annual Conference"), which shall be payable in the same manner as your Royalty Fee on the date we designate each calendar month once you are required to have your Franchised Business open and operating.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop may develop marketing, advertising, or promotional activities for all franchises. The costs of these campaigns, programs, and activities are paid using the Marketing Fees paid by franchisees. However, Fitstop reserves the right to request additional payments from franchisees upon reasonable demand.
Fitstop has also established a brand development fund designed to promote the Fitstop system, proprietary marks, system businesses, approved services/products, and the Fitstop brand generally. Franchisees are required to contribute to the Fund an amount equal to two percent (2%) of the Gross Revenue of the Franchised Business. These Fund Contributions are remitted at the same time and in the same manner as royalty fees, unless Fitstop designates another method with at least 30 days' prior written notice. All Fund Contributions are non-refundable upon payment, and Fitstop will account separately for all sums paid to the Fund.
Fitstop directs all advertising programs and has sole discretion to approve the creative concepts, materials, and media used in the programs. Based on this, Fitstop has sole discretion to administer the marketing fees. Franchisees must use only advertising and advertising materials that Fitstop provides, subject to exceptions identified in the agreement and the manuals. If a franchisee's advertising campaign does not conform to the manuals, they must submit all advertising plans and materials at least 30 calendar days prior to publication for Fitstop's approval, which Fitstop may grant, withhold, or modify at its discretion.
In addition to the brand development fund, franchisees may also be required to remit $150 per month as a contribution to defray the costs associated with any annual conference that Fitstop establishes and conducts for System Business owners. This contribution is payable in the same manner as the royalty fee on the date Fitstop designates each calendar month once the franchised business is open and operating.