Fleet Feet Franchise Agreement: What You Need to Know
Fleet Feet is a popular franchise that specializes in running shoes, apparel, and accessories. With over 180 locations across the United States, it has become a trusted name in the running community. If you are considering becoming a Fleet Feet franchisee, it is important to understand the franchise agreement and what it entails.
The Fleet Feet Franchise Agreement is a legal document that outlines the terms and conditions of the franchise relationship between the franchisor (Fleet Feet) and the franchisee (you). It is important to read the agreement carefully and thoroughly before signing it to ensure that you understand and agree to all of the terms.
The agreement covers various topics, including the initial franchise fee, ongoing royalties, advertising and marketing requirements, training and support, and more. Let`s take a closer look at some key aspects of the Fleet Feet Franchise Agreement.
Initial Franchise Fee
The initial franchise fee for a Fleet Feet franchise is $30,000. This fee covers the cost of the franchise license, initial training, and access to proprietary systems and processes. The fee is payable when you sign the franchise agreement and is non-refundable.
As a Fleet Feet franchisee, you will be required to pay ongoing royalties to the franchisor. The current royalty rate is 6% of gross sales, which is paid monthly. This fee covers ongoing training and support, as well as access to new products and services.
Advertising and Marketing
Fleet Feet requires all franchisees to contribute to a national advertising fund. The current contribution rate is 2% of gross sales, which is also paid monthly. This fee covers national marketing and advertising campaigns, as well as local advertising support.
Training and Support
Fleet Feet provides extensive training and support to its franchisees. The initial training program is a five-day course that covers everything from product knowledge and merchandising to sales and customer service. Ongoing training and support is also provided through webinars, conferences, and other resources.
The franchise agreement will define your exclusive territory, which is the geographic area in which you have the right to operate your Fleet Feet store. In general, territories are based on population density, and franchisees are required to maintain strict adherence to their territory boundaries.
Renewal and Termination
The initial term of a Fleet Feet franchise agreement is 10 years. Franchisees have the option to renew the agreement for an additional term, subject to certain conditions and fees. The agreement may also be terminated by either party for a variety of reasons, including breach of contract, insolvency, or failure to meet performance standards.
The Fleet Feet Franchise Agreement is a complex legal document that requires careful consideration and review. Before signing on as a franchisee, it is important to understand the terms and conditions of the agreement, as well as your rights and obligations as a franchisee. By doing your due diligence and seeking professional advice if necessary, you can make an informed decision about whether a Fleet Feet franchise is the right fit for you.