What sources of information were used to prepare the estimated investment ranges for a Fitstop franchise?
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 estimated initial investment ranges are based on several sources of information. These include the experience of Fitstop's affiliates in developing two System Businesses over the past 18 months, as well as the experience of the Affiliate Franchisor and its System franchisees operating in Australia.
In addition, Fitstop used information received from current third-party Approved Suppliers for specific investment items and categories. They also gathered data from real estate brokers and other sources regarding current real estate and commercial leasing markets. Fitstop also considered expectations and reasonable assumptions, such as franchisees securing approved premises and opening within specified timelines, building out the premises according to System standards, and using Approved Suppliers for required items.
Prospective franchisees should note that these estimates are based on Fitstop's experience and industry standards. It is crucial for potential franchisees to carefully review these figures in light of local conditions and consult with their accountant to ensure they are adequately prepared for the initial investment required to start a Fitstop franchise.