Who has the sole discretion to administer the marketing fees described in the Fitstop Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.6 System Marketing Material and/or Promotional Campaigns. We will direct all advertising programs and have sole discretion to approve or disapprove the creative concepts, materials, and media used in the programs.
Based thereon, we will have sole discretion to administer the marketing fees this Agreement describes herein.
Subject to the exceptions this Agreement identifies and the Manual(s), you shall use only advertising and advertising materials we provide.
Where your advertising campaign is not in conformance with the Manual(s), you will submit to us all advertising plans and advertising materials of any type, including, but not limited to, any digital media communication methods such as websites, blogs, instant message services, social media sites (i.e., Facebook, Twitter, Instagram, TikTok) and any comparable digital media communications at least 30 calendar days prior to publication, including any advertising on the internet, for our approval which we may grant or withhold in our sole judgment or modify at our discretion.
- 6.7 Ownership Acknowledgement. The approval by us of your advertising plans or advertising materials shall not, directly or indirectly, require us to pay for such advertising plans or advertising materials.
Moreover, we can, at our discretion, adopt such advertising plans or advertising materials and use them for our own benefit or disseminate them for use by other franchisees.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has sole discretion to administer the marketing fees described in the agreement. Fitstop will direct all advertising programs and has sole discretion to approve or disapprove the creative concepts, materials, and media used in the programs.
This means that Fitstop franchisees are required to use the advertising and advertising materials that Fitstop provides, subject to exceptions identified in the agreement and manuals. If a franchisee's advertising campaign does not conform to the manuals, the franchisee must submit all advertising plans and materials to Fitstop for approval at least 30 days before publication. Fitstop may grant, withhold, or modify approval at its discretion.
Fitstop's approval of a franchisee's advertising plans or materials does not require Fitstop to pay for them. Fitstop can also adopt and use these materials for its own benefit or disseminate them for use by other franchisees. This level of control is common in franchising, as it allows the franchisor to maintain brand consistency and ensure that marketing efforts align with the overall brand strategy.