Is Fitstop required to establish a Franchise Advisory Council (FAC)?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
While we are not required to do so, we may establish a Franchise Advisory Council ("FAC"). If established, we expect that such a FAC will provide advice to us on various matters, including advertising. The FAC will serve in an advisory capacity only and will have no operational or decision-making power. In the event we determine to establish an FAC, we will provide you with information related to the composition and selection of FAC members and other relevant information via the Manuals or otherwise in writing, to the extent we are required to do so by applicable laws.
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 establish a Franchise Advisory Council (FAC). However, Fitstop may choose to establish one at its discretion. If an FAC is established, it would serve in an advisory capacity, providing advice on various matters, including advertising, but would not have any operational or decision-making power.
If Fitstop decides to establish an FAC, franchisees will be provided with information regarding the composition and selection of FAC members, as well as other relevant information, either through the manuals or in writing, to the extent required by applicable laws. This ensures that franchisees are informed about the structure and operation of the FAC should it be formed.
Many franchise systems use Franchise Advisory Councils to foster communication and collaboration between the franchisor and franchisees. While Fitstop is not obligated to have one, the option remains open, potentially allowing for franchisee input and feedback on important aspects of the business, such as advertising strategies. Prospective franchisees should inquire about Fitstop's plans regarding the establishment of an FAC and how franchisee voices are otherwise incorporated into the decision-making process.