Does Fitstop have to provide any pre-opening assistance to franchisees?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
A. Pre-Opening Assistance
Except as disclosed below, we need not provide any assistance to you.
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- We will designate your Designated Territory in the Franchise Agreement prior to execution, unless the parties agree otherwise in a separate agreement (Franchise Agreement, Section 2);
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- We will provide any site selection guidelines and assistance in connection with selecting the Premises, to the extent the same has been reduced to writing in the Manuals or otherwise. We will also review, and subsequently approve/reject, any site you propose as a potential Premises as detailed more fully below in this Item. (Franchise Agreement, Section 9);
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- We will provide on-site assistance and training at your Premises (the "On-Site Assistance"), as detailed more fully in this Item below. (Franchise Agreement, Section 4);
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- We will provide you with a list of our Approved Products, Approved Services, Required Items and Approved Suppliers (to the extent we have designated the same), either as part of the Manuals or otherwise in writing. (Franchise Agreement, Section 11);
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- We will review and approve your signage, the proposed layout and design of your Premises (which must be prepared by our Approved Supplier unless we agree otherwise in writing), as well the equipment, furniture and fixtures used in connection with your Franchised Business, as we deem appropriate and advisable in our discretion. (Franchise Agreement, Sections 9, 10 and 11); and
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- We will provide our Initial Training Program to you and up to two (2) additional of your initial management (or principal) team, as disclosed more fully below under the next heading of this Item.
B. Initial Training Program (Franchise Agreement, Sections 4, 11 and 16)
We will provide our initial training program comprised of: (i) certain "Classroom Training" that you and any individual you wish to serve as a Designated Manager (as defined in this Disclosure Document) will have remote access to and must view and/or otherwise complete online via video instruction or other learning management system we designate to (a) monitor/track participation and progress, and/or (b) test competency levels, if and as we determine appropriate (collectively, the "Remote Training"); (ii) training
that we will provide to you and up to two (2) additional individuals at our corporate training location (or headquarters), currently located in California (which we refer to as our "Corporate Training"); and (iii) onsite training, assistance and support that you, your management, you, your initial management team and our Franchised Business personnel that will be involved in the initial operations (the "Initial Trainee Team") must participate and complete to our satisfaction (the "Initial On-Site Training"), which we may expect to provide at or around the time of Franchised Business has its contemplated soft opening.
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- Use of Remote Training for Certain Instruction. Certain portions of the Classroom Training hours (as detailed in the Chart below) may involve instruction provided by video or other digital technology while at our designated corporate training location.
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- Pre-Conditions to Us Providing Corporate Training or On-Site Initial Training. We may condition your ability to attend our Corporate Training and/or us providing you with any Initial On-Site Training on you: (i) expending the required amounts on the marketing and pre- opening sales activities we designate or otherwise approve in connection with your initial marketing plan, your lead generation efforts and the Initial Training Team's participation in the Initial On-Site Training that will be provided at your Premises;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop is not required to provide pre-opening assistance to franchisees, but may provide certain assistance. Fitstop will designate the franchisee's territory in the Franchise Agreement, provide site selection guidelines if they are written in the manuals, and review and approve the franchisee's proposed site. Fitstop will also provide on-site assistance and training at the franchisee's premises. Additionally, Fitstop will provide a list of approved products, services, required items, and suppliers, and will review and approve the franchisee's signage, layout, design, equipment, furniture, and fixtures. Fitstop will also provide an initial training program to the franchisee and up to two additional members of their initial management team.
Fitstop's initial training program includes remote classroom training, corporate training at their headquarters in California, and on-site training. Franchisees may be required to ensure at least two individuals, including themselves or the Franchise Operator, complete all initial training program components before opening. Personnel wishing to be Authorized Instructors must participate in and complete Fitstop's Instructor Training program and attend all portions of the Initial On-Site Training. Franchisees are responsible for all costs associated with completing the training, including personnel wages.
Fitstop may condition Corporate Training and Initial On-Site Training on the franchisee meeting certain pre-conditions. These include expending required amounts on marketing and pre-opening sales activities, establishing an EFT account, obtaining required insurance coverages, and providing signed copies of agreements and contracts. Fitstop expects to provide Initial On-Site Assistance around the time of the franchisee's soft opening or in the week preceding it. Franchisees are also required to spend a minimum of $10,000 on online and other marketing activities prescribed by Fitstop, typically 30 to 90 days prior to opening and continuing through the grand opening.