How will Fitstop provide the list of Approved Suppliers to franchisees?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Approved Suppliers**
We have the right to require you to purchase any items or services necessary to operate your Franchised Business from a supplier that we approve or designate – which we refer to as an "Approved Supplier" and may include us or our Affiliate(s). We will provide you with a list of our then-current Approved Suppliers in writing as part of the Manuals or otherwise in writing, and we may update or modify this list as we deem appropriate.
We are not currently the Approved Supplier for any Required Items you must acquire or use in connection with your Franchised Business, except: (i) any technology services we determine to provide as part of any Technology Fee we determine to establish in the future; and (ii) any ongoing Additional and/or Refresher Training, and/or new or replacement Instructor Training, that occurs once you have opened your Franchised Business, and for which we may charge our then-current Training Fee for the kind of training at issue; and (iii) any services we determine to provide as part of our current Fund.
As of the Issue Date, we expect and intend to have Approved Suppliers for the following items you must purchase in connection with your Franchised Business as of the Issue Date of this Disclosure Document: (i) certain furniture, fixtures, equipment and supplies you must purchase to buildout and/or operate your Franchised Business; (ii) site selection and other real estate services (recommended, but not necessarily required); (iii) software and technology we designate for use in connection with the System; (iv) signage furniture, fixtures, equipment, supplies and inventory comprising the Start-Up Equipment and Supplies
Package (detailed more fully in Item 8); (v) other inventory items and paper goods; (vi) branded items and retail merchandise, including certain Approved Products; (vii) certain marketing materials and services, which may include digital marketing and collateral such as flyers, coupons, banners, flags and similar promotional items; (viii) music licensing services (for use at your Premises); and (ix) project management and related services associated with the buildout and design of your Franchised Business (optional, not required).
Except as disclosed in this Item, (i) neither we nor any of our affiliates is currently an Approved Supplier for any other Required Item; and (ii) none of our officers own an interest in any third-party Approved Supplier.
We reserve the right to appoint ourselves, our affiliate(s) and/or any third party as the designated or Approved Supplier for any Required Item in the future, which we will communicate via the Manuals or other prior written notice.
Method of Approving Suppliers or Non-Approved Products
We may, but are not obligated to, grant your request to: (i) offer any products or services in connection with your Franchised Business that are not Approved Products and Services;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop will provide a list of approved suppliers to franchisees in writing as part of the Manuals or otherwise in writing. Fitstop retains the right to update or modify this list as they deem appropriate.
Fitstop is not currently the Approved Supplier for any Required Items franchisees must acquire or use in connection with their Franchised Business, except for (i) any technology services Fitstop determines to provide as part of any Technology Fee they determine to establish in the future, (ii) any ongoing Additional and/or Refresher Training, and/or new or replacement Instructor Training, that occurs once a franchisee has opened their Franchised Business, and for which Fitstop may charge their then-current Training Fee for the kind of training at issue, and (iii) any services Fitstop determines to provide as part of their current Fund.
As of the Issue Date of the 2024 Disclosure Document, Fitstop expects and intends to have Approved Suppliers for the following items franchisees must purchase in connection with their Franchised Business: (i) certain furniture, fixtures, equipment and supplies you must purchase to buildout and/or operate your Franchised Business; (ii) site selection and other real estate services (recommended, but not necessarily required); (iii) software and technology Fitstop designates for use in connection with the System; (iv) signage furniture, fixtures, equipment, supplies and inventory comprising the Start-Up Equipment and Supplies Package; (v) other inventory items and paper goods; (vi) branded items and retail merchandise, including certain Approved Products; (vii) certain marketing materials and services, which may include digital marketing and collateral such as flyers, coupons, banners, flags and similar promotional items; (viii) music licensing services (for use at your Premises); and (ix) project management and related services associated with the buildout and design of your Franchised Business (optional, not required).
If a Fitstop franchisee wishes to purchase from a non-approved supplier, they must request and obtain Fitstop's approval in writing before purchasing from the non-approved supplier. The franchisee must pay Fitstop's then-current supplier or non-approved product or service evaluation fee when submitting their request. Fitstop reserves the right to charge the greater of (a) the costs/expenses they incur in evaluating/testing the proposal, and (b) $1,000 per proposal.