What is the process for Fitstop to approve or disapprove the form and content of advertising submitted by a franchisee?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
funds.
6.4 Local Marketing and Local Marketing Requirement (or "LMR").
- 6.4.1 You must market and promote the Franchised Business at your cost, including using your best endeavors to actively promote the Franchise and in particular must regularly canvass members and potential members and follow up any leads you receive or that we may provide. You must not arrange, authorize, or carry out any advertising in relation to the Franchise unless we approve the form and content of the advertising in writing or it is in conformance with the Manual(s). You shall ensure that all marketing and promotional activities conform to the standards of ethical marketing and the policies prescribed by us and are not in any way misleading or deceptive.
- 6.4.2 You must expend the minimum amount equal to 1% of the Gross Revenue generated by the Franchised Business during the preceding calendar month of operations to market, promote and advertise the Franchised Business within the Designated Territory (the "Local Marketing Requirement" or "LMR"). We may require that all or some portion of your LMR be expended on services/collateral that you must acquire from one (1) or more of our then-current Approved Suppliers. Upon our request, you must provide us with invoices or other proof of your monthly expenditures on local advertising and marketing. You must ensure that: (i) the Franchised Business has a dedicated phone line for use in connection with the Franchised Business only (and no other business, including any other System Business); and (ii) the Franchised Business is listed in the appropriate Internet-based directories that we designate in the Manual(s) or otherwise.
- 6.4.3 You may not advertise and promote the Franchised Business outside of the Designated Territory, unless (a) the geographic area wherein you wish to advertise is contiguous to the Designated Territory and that area has not been granted to any other System Business or System franchisee/developer, and (b) we otherwise provide our prior written consent.
- 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 obtain written approval from Fitstop for the form and content of any advertising they wish to use, unless it conforms to the guidelines provided in the manuals. This ensures that all marketing efforts align with Fitstop's brand standards and ethical marketing policies. Franchisees are expected to actively promote their Fitstop location and regularly engage with current and potential members.
This approval process is in place to maintain consistency and prevent misleading or deceptive advertising. Fitstop also requires that all marketing and promotional activities adhere to ethical marketing standards and the policies they prescribe. This protects both the brand's reputation and consumers.
Fitstop requires franchisees to spend a minimum of 1% of the previous month's gross revenue on local marketing. Fitstop may also require franchisees to use approved suppliers for these marketing expenditures. Franchisees must provide invoices or other proof of their monthly advertising and marketing expenses upon request. Franchisees are restricted from advertising outside their designated territory unless the area is contiguous and unassigned, and they have Fitstop's written consent.
Social media activity that does not conform to Fitstop's manuals must be approved in writing by Fitstop in advance. Fitstop has the authority to remove any unapproved social media activity. Franchisees are prohibited from disparaging Fitstop or other franchisees on social media or posting anything that could harm the brand's reputation, with violations considered a material breach of the franchise agreement.