Under what condition will the Fitstop surety bond be on file with the Maryland Securities Division?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 5 of the Disclosure Document is supplemented by the following:
- Based on our current financial condition, the Maryland Attorney General's Office requires that we post a surety bond to guarantee that we will fulfill our pre-opening obligations to you. The surety bond will be on file if and when we offer franchises in Maryland with the Maryland Securities Division.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if Fitstop offers franchises in Maryland, the Maryland Attorney General's Office requires Fitstop to post a surety bond. This bond guarantees that Fitstop will fulfill its pre-opening obligations to franchisees in Maryland. The surety bond will be on file with the Maryland Securities Division when Fitstop offers franchises in Maryland.
This requirement is based on Fitstop's current financial condition, as determined by the Maryland Attorney General's Office. The surety bond serves as a financial guarantee to protect new Fitstop franchisees in Maryland, ensuring that Fitstop has the resources to meet its commitments before the franchise location opens.
For a prospective Fitstop franchisee in Maryland, this means that a surety bond is in place to protect their investment during the initial phase of setting up the franchise. It is important to verify with Fitstop and the Maryland Securities Division that the bond is indeed on file before investing in a franchise.