Can Fitstop use the Brand Development Fund for mystery shopper programs?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
With any advertising funds paid, we have sole discretion as to how and where the money is spent to promote, enhance, or further the growth of the system, including, without limitation, promotional marketing, public relationships, and advertising expenses, hiring marketing, public relations and advertising agencies and internal personnel to assist in developing the brand name and average unit volumes, expenses associated with listings in telephone books, subsidies of premiere/marquis locations designed to garner media attention and promote the brand name, travel expenses in connection with promotions and marketing meetings, training, development of Proprietary Marks and trademarked materials, production of circulars, media, advertisements, coupons, and promotional materials (including point of purchase materials), market research, developing training tools designed to assist System franchisees, the cost of developing and maintaining an Internet website and other digital marketing tools, developing and deploying mystery shopper programs and for any other use we determine. Additionally, we can use the Fund to pay for expenses incurred in developing and maintaining non-franchise sales portion of our primary brand website. We are not required to spend any advertising funds in your specific area or territory.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has the authority to use the Brand Development Fund for various purposes, including developing and deploying mystery shopper programs. This means that a portion of the 2% of Gross Revenue that franchisees contribute to the Brand Development Fund could be allocated to evaluating customer service and operational standards through mystery shoppers.
Fitstop retains sole discretion over how the Brand Development Fund is spent to promote and enhance the Fitstop system. This includes promotional marketing, public relations, advertising expenses, and the development of training tools. The explicit mention of mystery shopper programs provides Fitstop franchisees with insight into how these funds may be utilized to improve the overall quality and customer experience within the franchise system.
It is important to note that Fitstop is not required to spend any advertising funds in a franchisee's specific area or territory. While the Brand Development Fund can be used for mystery shopper programs and other quality control measures, franchisees should be aware that the benefits of these programs may not be directly localized to their individual Fitstop location. Franchisees can request an annual accounting of the Brand Development Fund to understand how the funds are being allocated across the Fitstop system.