Does Fitstop require a background check on the Designated Manager?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
If you are not willing to be the full-time operator of your business, then you will be required to engage a manager and have them complete our training program (the "Designated Manager"). The Designated Manager is not required to hold an equity interest in the franchisee entity.
Any and all Designated Manager(s) must sign our then-current prescribed form of Confidentiality and Non-Competition Agreement. If and when a Designated Manager leaves his/her/their employment at your Franchised Business, you must recruit a new Designated Manager within thirty (30) days and submit the replacement's qualifications to us for our review and approval (which may be conditioned on completion of certain "Management Criteria") before substituting a new Designated Manager at any of your locations (unless you resume taking over the day-to-day operations of the Franchised Business on a full-time basis).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 40–41)
What This Means (2024 FDD)
Based on the 2024 Fitstop Franchise Disclosure Document, there is no mention of Fitstop requiring a background check for the Designated Manager. However, if a franchisee is not willing to be the full-time operator of the business, they are required to engage a Designated Manager who must complete Fitstop's training program.
The FDD states that any Designated Manager must sign Fitstop's current Confidentiality and Non-Competition Agreement. Additionally, the franchisee must submit a replacement Designated Manager's qualifications for Fitstop's review and approval within thirty (30) days of the previous manager leaving, before the replacement can be instated, unless the franchisee resumes full-time operation of the business.
While the FDD does not explicitly state that a background check is required, it is important for a prospective franchisee to clarify with Fitstop what "Management Criteria" are assessed during the review and approval process of a Designated Manager. Understanding these criteria will help ensure that any potential manager meets Fitstop's requirements and can maintain smooth operations at the franchised location.