factual

Does Fitstop specify how the brand development Fund will be administered?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

we otherwise provide our prior written consent.

  • 6.5 Brand Development Fund. We have established or expect to establish a brand development fund (the "Fund") designed to promote, advertise, market and/or otherwise develop the System, Proprietary Marks, System Business(es), Approved Services/Products and/or our brand generally. You will be required to contribute to the Fund an amount equal to two percent (2%) of the Gross Revenue of the Franchised Business ("Fund Contributions"), which shall be remitted to us at the same time and in the same manner as your Royalty Fees (unless we designate another method upon at least 30 days' prior written notice via the Manual(s) or otherwise). All Fund Contributions are non-refundable upon payment, and we will account separately for all sums paid to the Fund.
  • 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.
  • 6.8 Telephone and Communications Systems. You must, if requested in writing by us at any time during the Term, at your cost: (1) install and use in the Franchise telephone and other communications systems (including point of sale hardware and software) specified by us for the operation of the Franchise;

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has established a brand development fund designed to promote the Fitstop system, proprietary marks, system businesses, approved services/products, and the brand generally. Franchisees are required to contribute 2% of their gross revenue to this fund, remitted at the same time and manner as royalty fees. These contributions are non-refundable, and Fitstop will account separately for all sums paid into the fund.

Fitstop retains sole discretion to administer the marketing fees and approve or disapprove creative concepts, materials, and media used in advertising programs. Franchisees must use only advertising and advertising materials provided by Fitstop, subject to exceptions identified in the agreement and manuals. Any advertising campaigns not conforming to the manuals require submission to Fitstop for approval at least 30 days prior to publication.

Fitstop is not required to expend any particular portion of the fund or franchisee contributions specifically to a franchisee's designated territory. Fitstop can also adopt a franchisee's advertising plans or materials for their own benefit or disseminate them for use by other franchisees. This means that while franchisees contribute to the fund, Fitstop has broad authority over how the funds are spent and is not obligated to direct marketing efforts specifically to benefit individual franchise locations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.