Under what circumstances is Fitstop an approved supplier for Fitstop franchisees?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to require you to purchase any items or services necessary to operate your Franchised Business from a supplier that we approve or designate – which we refer to as an "Approved Supplier" and may include us or our Affiliate(s). We will provide you with a list of our then-current Approved Suppliers in writing as part of the Manuals or otherwise in writing, and we may update or modify this list as we deem appropriate.
We are not currently the Approved Supplier for any Required Items you must acquire or use in connection with your Franchised Business, except: (i) any technology services we determine to provide as part of any Technology Fee we determine to establish in the future; and (ii) any ongoing Additional and/or Refresher Training, and/or new or replacement Instructor Training, that occurs once you have opened your Franchised Business, and for which we may charge our then-current Training Fee for the kind of training at issue; and (iii) any services we determine to provide as part of our current Fund.
As of the Issue Date, we expect and intend to have Approved Suppliers for the following items you must purchase in connection with your Franchised Business as of the Issue Date of this Disclosure Document: (i) certain furniture, fixtures, equipment and supplies you must purchase to buildout and/or operate your Franchised Business; (ii) site selection and other real estate services (recommended, but not necessarily required); (iii) software and technology we designate for use in connection with the System; (iv) signage furniture, fixtures, equipment, supplies and inventory comprising the Start-Up Equipment and Supplies
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has the right to require franchisees to purchase necessary items or services from an approved or designated supplier, which may include Fitstop itself or its affiliates. Fitstop will provide a list of approved suppliers in writing and may modify this list as deemed appropriate.
Currently, Fitstop is the approved supplier for specific items. These include any technology services provided as part of a Technology Fee, ongoing additional or refresher training, new or replacement instructor training for which Fitstop may charge a training fee, and any services provided as part of their current fund.
As of the FDD's issue date, Fitstop anticipates having approved suppliers for various other items. These include furniture, fixtures, equipment, and supplies for building and operating the franchise, site selection and real estate services (recommended but not required), designated software and technology, signage, start-up equipment and supplies, inventory items and paper goods, branded items and retail merchandise, certain marketing materials and services, music licensing services, and optional project management services for the franchise buildout and design.