Is there a minimum revenue a Fitstop franchise must generate before contributing to the brand development fund?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must contribute to the brand development fund an amount equal to two percent of the franchised business's gross revenue. The FDD does not state a minimum revenue threshold that a Fitstop franchise must reach before contributing to the brand development fund.
Gross revenue for Fitstop includes the total amount of consideration, whether cash, credit, or payment in kind, received for all goods sold and services, including all membership fees and other revenue generated from the sale of approved services and products. It also includes barter, which is the exchange of tuition for services or products. Gross revenue excludes refunds, uncollectible debts, taxes collected and paid to a tax authority, and tuition credits for staff children.
The brand development fund is used by Fitstop to promote, advertise, market, and develop the Fitstop system, proprietary marks, system businesses, approved services and products, and the brand in general. All fund contributions are non-refundable upon payment, and Fitstop will account separately for all sums paid to the fund.