Is there a limit to the number of Fitstop franchises a franchisee can own before needing a Designated Manager at each location?

According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee owns more than one Fitstop franchise, they must have a Designated Manager at each location they are not managing themselves. This means that if a franchisee actively manages one Fitstop location, they are required to have a trained Designated Manager for each additional Fitstop franchise they own.

This requirement ensures that each Fitstop location is properly supervised and managed, maintaining brand standards and operational efficiency. The Designated Manager must complete Fitstop's training program, ensuring they have the necessary skills and knowledge to run the franchise effectively. This requirement applies regardless of how many franchises the franchisee owns beyond the first; each additional location needs a Designated Manager if the franchisee isn't the on-site manager.

For a prospective Fitstop franchisee, this means that as they consider expanding to multiple locations, they must factor in the cost and effort of hiring and training a Designated Manager for each additional franchise. This could impact the profitability and scalability of owning multiple Fitstop franchises, as the franchisee will need to delegate management responsibilities and ensure each manager is adequately trained and supervised. The franchisee must also submit any replacement Designated Manager's qualifications to Fitstop for review and approval.

This policy is fairly standard in the franchise industry, as franchisors often require on-site management to maintain quality control and consistency across all locations. Fitstop's approach allows for flexibility by permitting the franchisee to manage one location themselves while requiring trained managers for others, balancing the franchisee's involvement with the need for effective management at each site.