Under what condition must a Fitstop franchisee obtain their accountant's certification of financial documents?

According to Fitstop's 2024 Franchise Disclosure Document, a franchisee must obtain their accountant's certification of financial documents if Fitstop requests it. Specifically, if Fitstop requests, the franchisee must obtain their accountant's certification of any one or more of the financial documents before submitting them to Fitstop.

This requirement means that Fitstop has the right to demand a higher level of assurance regarding the accuracy of the financial information provided by its franchisees. This is a fairly standard practice in franchising, as franchisors need to ensure the consistent and accurate reporting of financial data for royalty calculations and overall system performance monitoring.

For a prospective Fitstop franchisee, this implies that they should maintain a good relationship with a qualified accountant and be prepared to incur the expense of certification if requested by Fitstop. While the FDD does not specify the frequency or reasons for such requests, it is prudent to budget for this potential cost and ensure that their accounting practices are sound and auditable. Franchisees should inquire with Fitstop about what triggers a request for certified financial documents.