Does Fitstop have any predecessors that require disclosure in Item 1 of the FDD?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not have any predecessors that require disclosure in this Item.
Our parent and sole owner, Fitstop Holdings Pty Limited (our "Parent"), is a holding company formed under the laws of Australia in October 2018 that has a principal business address at 51 Manilla St., East Brisbane Qld 4169 Australia. Except for owning us and certain affiliate entities (some of which are disclosed below), our Parent has not (a) offered or awarded franchises or licenses in any line of business, or (b) engaged in any other material business activities.
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, Fitstop USA, Inc. does not have any predecessors that require disclosure in Item 1. However, the document does state that Fitstop Holdings Pty Limited is Fitstop's parent and sole owner. This parent company, formed in Australia in October 2018, primarily functions as a holding company and has limited business activities outside of owning Fitstop USA, Inc. and certain affiliate entities.
Additionally, Fitstop has an affiliate, Fitstop Australia Pty Ltd (the Affiliate Franchisor), which has been offering and awarding franchises substantially similar to those offered in the U.S. 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. It is important to note that the Affiliate Franchisor 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 through a license agreement with Fitstop IP Pty Limited (the TM Owner), an Australian company that holds the ownership rights to the Proprietary Marks and other System intellectual property. These relationships are important for prospective franchisees to understand, as they highlight the international structure and intellectual property management within the Fitstop franchise system.