What is the role of the Affiliate Franchisor in the development of Fitstop Franchised Businesses?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
General Note. The estimated investment ranges were prepared based upon and accounting for: (i) various sources of information, including (a) the experience of our affiliates developing two (2) System Businesses (each, an "Affiliate Business") over the past 18 months, (b) the experience of our Affiliate Franchisor and its System franchisees that have Franchised Businesses operating or under development in Australia, (c) information we have received from our current third-party Approved Suppliers for certain investment items or categories above, (d) information and data that we have received from various real estate brokers and/or other sources for information with respect to current real estate and commercial leasing markets, and (e) various other due diligence; and (ii) a number of expectations and reasonable assumptions that we make as part of our standard franchise offering, such as franchisee (a) securing an approved Premises and opening the Franchised Business within the prescribed timelines set forth in your Franchise Agreement (and on or before the Rent Commencement Date under the lease for the Premises), and (b) ensuring that the Premises is built out in accordance with our current System standards, specifications and processes, and (c) using our Approved Suppliers for certain Required Items as set forth in the Chart above and in Item 8 of this Disclosure Document below.
Source: Item 7 — TEM 7: ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Affiliate Franchisor's experience with System franchisees operating or under development in Australia is used to prepare the estimated investment ranges. This suggests that the Affiliate Franchisor plays a role in guiding the financial planning and expectations for new Fitstop franchisees. Their experience in Australia helps to inform the cost estimates for setting up and running a Fitstop franchise.
Specifically, the estimated investment ranges are based on the Affiliate Franchisor's experience and its System franchisees that have Franchised Businesses operating or under development in Australia. This indicates that the Affiliate Franchisor has experience in establishing and growing Fitstop franchises in a different market, and this experience is leveraged to provide guidance and support to new franchisees in the US.
This information is used, along with other sources, to estimate costs such as the initial franchise fee of $50,000, initial marketing spend of $10,000, and leasehold improvements ranging from $100,000 to $325,000. The Affiliate Franchisor's experience contributes to a comprehensive understanding of the financial requirements for launching a Fitstop franchise.