Does the registration of the Fitstop franchise in California constitute approval, recommendation, or endorsement by the Commissioner of the Department of Financial Protection and Innovation?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
HIBIT H: STATE-SPECIFIC ADDENDUM TO THE DISCLOSURE DOCUMENT**
STATE ADDENDUM TO DISCLOSURE DOCUMENT
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document, the following provisions shall supersede and apply to all franchises offered and sold in the states identified below:
FOR THE STATE OF CALIFORNIA
Registration of this franchise does not constitute approval, recommendation, or endorsement by the Commissioner of the Department of Financial Protection and Innovation.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
The California Corporations Code, Section 31125, requires that we give you a disclosure document, approved by the Department of Business Oversight, prior to s
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the registration of the franchise in California does not constitute approval, recommendation, or endorsement by the Commissioner of the Department of Financial Protection and Innovation. This means that while Fitstop is registered to offer franchises in California, the state's regulatory body does not vouch for the franchise's viability or suitability as an investment. Prospective franchisees must conduct their own due diligence to assess the risks and benefits of investing in a Fitstop franchise.
This disclaimer is a standard requirement in franchise disclosure for California and other states with franchise registration laws. It aims to prevent potential franchisees from assuming that state registration implies any form of state endorsement or guarantee. The FDD also clarifies that the California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document.
Furthermore, the Fitstop FDD states that the websites associated with Fitstop have not been reviewed or approved by the California Department of Financial Protection and Innovation. Any complaints concerning the contents of the website may be directed to the California Department of Financial Protection and Innovation. This reinforces the importance of franchisees independently verifying information and not relying solely on the franchisor's marketing materials.