factual

What is the standard franchise offering for a Fitstop franchise?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

Our franchise offering is for the right to independently own and operate a franchised System Business that is authorized to offer, sell and/or provide the Approved Services and Approved Products utilizing our thencurrent (a) system of operations developed by us, our parent and our affiliates (the "System"), and (b) Proprietary Marks, pursuant to our current form of franchise agreement attached to this Disclosure Document as Exhibit A (the "Franchise Agreement").

The Franchised Business is, at its core, a functional group fitness training facility. Our standard franchise offering expects and assumes that a typical Franchised Business will primarily offer the Approved Services via membership agreements and packages that allow a client/member to attend and participate in a certain number of group fitness training sessions or "classes" each month at the Franchised Business.

The only individuals that may actually provide fitness training and instruction (the primary Approved Services) at the Franchised Business (each, an "Authorized Instructor") must: (i) demonstrate that they have all appropriate licenses, certifications or approval to serve as a "Personal Trainer" or equivalent role under the laws and regulations where the Franchised Business is located; and (ii) successfully complete our role-specific training course(s) that are designated to teach and inform a prospective instructor with respect to conducting fitness training and classes in a format and using a curriculum that is consistent with our then-current System standards and specifications (the "Instructor Training" and collectively with subpart (i), the "Instructor Criteria"). As noted more fully in Item 11 of this Disclosure Document, our standard franchise offering assumes and accounts for us providing the System Instructor Training, which is currently provided remotely via an online learning management system (or "LMS"), in connection with up to (5) individuals – including you or, if Franchisee is an entity, its operating principal (or "Franchise Operator") – prior to the opening of your Franchised Business without charging any additional training tuition or fee(s), as detailed more fully in Items 7, 8 and 11 of this Disclosure Document.

You must operate the Franchised Business from a premises that you propose and we approve in writing before you secure the same (the "Premises"). As of the Issue Date, our standard franchise offering expects and assumes that your Premises will: (i) be between 1,800 and 3,000 square feet in size; (ii) have ample parking (shared or otherwise) for Members and other patrons of the Franchised Business; and (iii) be located in a larger shopping venue as an in-line or, provided the lease terms are commercially reasonable, an end-cap location. We will approve any site you propose as the Premises for your Franchised Business as disclosed more fully in Item 11 of this Disclosure Document.

As part of our current standard offering, we expect and intend to award you a geographical area wherein: (i) you must locate and secure an approved Premises; and (ii) we will afford you certain territorial rights as disclosed more fully in Item 12 of this Disclosure Document (your "Designated Territory"). Once you secure an approved Premises within that Designated Territory within the timeline set forth in your Franchise Agreement, we may mutually agree to amend the boundaries of the Designated Territory in a separately-signed addendum to provide territorial rights within the area that immediately surrounds the actual Premises where the Franchised Business is being operated.

Our brand and concept are designed to attract the "everyday athlete", those people in the community looking to level up their performance, get back to their sporting roots, or feel part of a game-changing team environment. More than this, our brand commitment is "Move more to Live more." Training at FITSTOP® may help your life improve outside of Fitstop, too. With many competitors in the boutique fitness space focusing on high-intensity interval training, our brand and System Businesses set themselves apart with their high-caliber strength and conditioning training.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–9)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, the franchise offering is for the right to independently own and operate a functional group fitness training facility. Fitstop franchisees are authorized to offer and sell approved services and products, utilizing Fitstop's system of operations and proprietary marks. The core of the Fitstop business involves offering group fitness training sessions through membership agreements and packages.

As part of the standard offering, Fitstop expects franchisees to secure an approved premises within a designated geographical area. Fitstop may amend the boundaries of the designated territory to provide territorial rights within the area that immediately surrounds the actual premises where the franchised business is being operated. The brand aims to attract the "everyday athlete" by providing high-caliber strength and conditioning training, distinguishing itself from competitors that focus on high-intensity interval training.

The Fitstop franchise also incorporates technology, notably the custom-built Fitstop App, which manages the member journey and links to performance tools for franchise owners. The standard franchise offering also accounts for Fitstop providing System Instructor Training, which is currently provided remotely via an online learning management system, in connection with up to 5 individuals prior to the opening of the franchised business without charging any additional training tuition or fees.

Fitstop expects the franchisee's premises to be between 1,800 and 3,000 square feet in size, with ample parking, located in a larger shopping venue as an in-line or end-cap location. Franchisees must ensure that all fitness training and instruction is provided by Authorized Instructors who have the appropriate licenses, certifications, or approvals and have successfully completed Fitstop's Instructor Training.

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.