Who retains the rebates or payments received from Approved Suppliers for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You acknowledge that we may negotiate and/or receive rebates or other financial incentives from the manufacturers and suppliers of any Required Items and/or Approved Products that a System franchisee must acquire and/or offer for sale at the Premises or otherwise in connection with the Franchised Business.
You agree that we may retain for our own benefit all rebates or payments received from any Approved Suppliers and/or other providers/suppliers, whether or not such rebates or payments are made as a consequence of purchases by you.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop retains any rebates or payments received from Approved Suppliers. This applies to rebates or payments made as a result of franchisee purchases.
This means that while Fitstop franchisees are required to purchase certain items from approved suppliers, any financial incentives, such as rebates, that Fitstop negotiates with these suppliers will be kept by Fitstop. The franchisee will not directly benefit from these rebates.
This arrangement is fairly common in franchising, as it allows the franchisor to potentially offset costs or generate revenue. However, prospective Fitstop franchisees should consider this when evaluating the overall cost of goods and services they will be required to purchase for their franchise.