What is the purpose of the other promotional activities that Fitstop recommends or requires?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
tion 6: Marketing/Advertising and Technology**
©2024 Fitstop USA, Inc. 6.1 Marketing, Advertising and Promotion Generally. We may develop general marketing, advertising or promotional activities or campaigns for all franchises in the network including the Franchise. You must comply with the terms of and actively participate in all sales, marketing, or promotional
campaigns, programs or activities conducted, or reasonably required, by us. You will have access to marketing, promotional, and presentation material including template emails, scripts, presentation packs via the online system and Manual(s). You shall fully cooperate with us in connection with, and participate in, all of our market research programs. We will pay the costs of such campaigns, programs, and activities using the Marketing Fees paid by you and other franchisees but we reserve the right to request additional payments from you and other franchisees upon reasonable demand.
6.2 Use of Prescribed Materials. You must display on or about the premises only those signs, posters, and other advertising material we approve. You must maintain all signs, posters and other advertising material in a clean and satisfactory condition and good state of repair. Without prejudice to any other remedy available, we may, through our employees and agents, remove from the premises any printed matter, signs, posters, or other advertising material which we have not approved or which is not in a clean or satisfactory condition and state of repair.
6.3 Initial Marketing Spend; Other Initial Marketing/Promotional Efforts.
- 6.3.1 Initial Marketing Spend. You are required to spend a minimum of $10,000 in various online and/or other marketing activities that we prescribe as part of our System and that we expect will be paid to our Approved Supplier (the "Initial Marketing Spend"). Typically, we expect that you will be required to expend these amounts 30 to 90 days prior to opening and continuing through the grand opening of your Franchised Business – as we discuss and specify prior to any opening or operation of your Franchised Business in the Manual(s) or otherwise in writing. We may require that you expend any portion of the Initial Marketing Spend on materials/services that are purchased from our Approved Supplier(s).
- 6.3.2 Other Initial Marketing/Promotional Efforts. We strongly recommend, and may require, that you expend up to an additional $10,000 on other promotional activities designed to increase the visibility of your Franchised Business within the Designated Territory prior to or around the time of your contemplated or required opening. We may provide further directives to you via the Manuals or otherwise in writing on how we suggest or, in some cases, require our System franchisees to expend these 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop may create marketing, advertising, or promotional campaigns for all franchises, and franchisees must participate in these activities. Franchisees gain access to marketing materials like email templates and presentation packs through the online system and manuals. Fitstop pays for these campaigns using the marketing fees collected from franchisees but retains the right to request additional payments from franchisees if needed.
Fitstop requires franchisees to use only approved signs, posters, and advertising materials on the premises, maintaining them in good condition. Fitstop can remove unapproved or poorly maintained materials. Franchisees must adhere to Fitstop's social media policy, seeking written approval for any non-conforming social media activity. Franchisees cannot disparage Fitstop or other franchisees on social media.
Fitstop may establish a Member Loyalty Program, requiring franchisees to participate fully and purchase necessary materials from Fitstop. The terms of the program are detailed in the manuals and can be modified or withdrawn by Fitstop. Fitstop also offers ongoing consultation to franchisees on operations, advertising, promotion, and administration, including scheduled meetings with business performance coaches, but consultation does not extend to employment practices. These measures ensure brand consistency and support the overall marketing and operational effectiveness of the Fitstop franchise system.