Who has the right to establish, modify, merge, and dissolve Fitstop regional cooperatives?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right to establish regional cooperatives that are comprised of a geographical market area that contains two (2) or more Franchised Businesses (whether a Franchised Business or Affiliate-owned) (each a "Cooperative"). If we assign your Franchised Business to a Cooperative we establish, you must work with the other Franchised Business owners in your Cooperative and us to develop and implement regional advertising campaigns designed to benefit all the Franchised Businesses within the geographical boundaries of the Cooperative. We have not established any Cooperatives as of the Issue Date of this Disclosure Document and have not contemplated how much a Franchised Business might be required to contribute to such a Cooperative. We will have the right to establish, modify, merge and dissolve Cooperative as we deem appropriate. Any amounts you expend on Cooperatives will be credited towards your Local Advertising Requirement.
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 retains the authority to manage regional cooperatives. Fitstop reserves the right to establish these cooperatives, which consist of a geographical market area containing two or more franchised businesses, whether franchisee-owned or affiliate-owned.
Fitstop also has the right to modify, merge, and dissolve these cooperatives as it deems appropriate. As of the FDD's issue date, Fitstop has not established any cooperatives and has not determined the contribution amount required from a franchised business. If Fitstop assigns a franchisee's business to a cooperative, the franchisee must collaborate with other franchised business owners and Fitstop to develop and implement regional advertising campaigns that benefit all businesses within the cooperative's geographical boundaries.
Any amounts a franchisee spends on cooperative advertising will be credited toward their local advertising requirement. This structure allows Fitstop to maintain control over regional marketing strategies and ensure consistent brand messaging, while also requiring franchisees to participate in and contribute to these efforts.