What is the 'System' that Fitstop franchisees must utilize?
Fitstop Franchise · 2024 FDDAnswer 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.
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 'System' refers to the operational methods developed by Fitstop, its parent company, and its affiliates. A Fitstop franchisee is authorized to operate a franchised business that offers and sells approved services and products, utilizing Fitstop's current system of operations and proprietary marks. The core of the Franchised Business is a functional group fitness training facility offering approved services via membership agreements and packages. These agreements allow members to attend a certain number of group fitness training sessions each month.
To maintain the System's standards, Fitstop requires that all fitness training and instruction be provided by 'Authorized Instructors'. These instructors must possess the necessary licenses, certifications, or approvals to serve as a personal trainer under local laws and regulations. Additionally, they must complete Fitstop's role-specific training course, designed to teach instructors how to conduct fitness training and classes in accordance with the System's standards. This Instructor Training is provided remotely via an online learning management system for up to five individuals, including the franchisee or operating principal, before the business opens, without additional tuition fees.
Fitstop franchisees must operate from a premises that Fitstop approves in writing. As of the Issue Date of the FDD, the standard franchise offering expects the premises to be between 1,800 and 3,000 square feet in size, with ample parking for members. The location should ideally be in a larger shopping venue, either as an in-line or end-cap location, provided the lease terms are commercially reasonable. Franchisees must also comply with all applicable local, state, and federal laws related to fitness businesses and membership models, including the Americans with Disabilities Act and OSHA's workplace safety regulations.