Can Fitstop withdraw from supply the materials for use in connection with the Fitstop Member Loyalty Program?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You must participate fully in any Member Loyalty Program which we decide to establish and implement.
The terms on which you will participate in the Member Loyalty Program will be set out in the Manual(s) from time to time but for the avoidance of doubt will be necessary to protect or promote our legitimate commercial interest.
You must purchase from us the cards, application forms, and other materials for use in connection with the Member Loyalty Program prior to its commencement date and as and when required in the operation of the Franchise in accordance with the Manual(s).
We may, in our reasonable discretion, by written notice to you at any time: (1) vary the terms of the Member Loyalty Program or (2) withdraw from supply the cards, application forms and other materials for use in connection with Member Loyalty Program.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop may withdraw from supplying the cards, application forms, and other materials for use in connection with the Member Loyalty Program. Fitstop can do so by providing written notice to the franchisee at any time. This action is within Fitstop's reasonable discretion.
This means that while franchisees are required to participate fully in any Member Loyalty Program that Fitstop establishes and implements, Fitstop retains the right to change or discontinue supplying the necessary materials. Franchisees must purchase these materials from Fitstop prior to the program's commencement and as needed for the Franchise's operation, according to the manuals.
This provision gives Fitstop flexibility in managing the Member Loyalty Program, but it also introduces a potential risk for franchisees. If Fitstop withdraws the supply of materials, franchisees may need to adapt quickly to continue the program or risk disappointing their members. It is important for prospective franchisees to understand the terms of the Member Loyalty Program and Fitstop's rights regarding its modification or termination.