What is the purpose of the Fitstop Brand Development Fund?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
- 6.7 Ownership Acknowledgement. The approval by us of your advertising plans or advertising materials shall not, directly or indirectly, require us to pay for such advertising plans or advertising materials.
Moreover, we can, at our discretion, adopt such advertising plans or advertising materials and use them for our own benefit or disseminate them for use by other franchisees.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Brand Development Fund is designed to promote the Fitstop system and brand. Franchisees are required to contribute to this fund, which Fitstop uses for marketing and advertising efforts.
The purpose of the Brand Development Fund is to promote, advertise, market, and develop the Fitstop system, proprietary marks, system businesses, approved services and products, and the brand in general. Franchisees contribute 2% of their gross revenue to the Fund. These contributions are non-refundable.
Fitstop has sole discretion over how the marketing fees are administered, including the approval of creative concepts, materials, and media used in advertising programs. While franchisees may submit their own advertising plans and materials, Fitstop retains the right to approve, modify, or withhold approval at its discretion. Fitstop can also adopt franchisee-submitted materials for its own benefit or for use by other franchisees.
Fitstop is not required to expend any particular portion of the Fund or a franchisee's contributions on marketing or other services specifically allocated to their designated territory. This means that while franchisees contribute to the fund, they may not directly benefit from marketing efforts in their specific area. Prospective franchisees should inquire about Fitstop's specific plans for the Brand Development Fund and how it will support franchisees in different markets.