Is access to the Required Software included as part of the Technology Fee for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
more fully in Item 7 above. We expect that access to all current Required Software will be afforded to our System franchisees as part of the Technology Fee (which is currently 2% of Gross Revenue as detailed more fully in Item 6).
We will have independent and electronic access to the information and data collected or generated by the Required Software and other Computer System components. There are no contractual limits on our rights to do so. We may require updates and upgrades to the Computer System and/or Required Software from time to time during the term of the franchise agreement. We require updates and upgrades to your hardware, software and other Computer System components as such become available, at your expense, upon providing you with reasonable advance notice via the Manuals or otherwise in writing (i.e., typically 60 or more days). There are no contractual limitations to the frequency and cost of the obligation to upgrade and maintain these items. With that said, we do not currently have any specific ongoing maintenance and/or support contract requirements other than working with our third-party Approved Supplier for billing/collection and related services. We estimate that you may spend an average of between $500 and $1,500 (per year from the date you acquire the same) on annual updates and maintenance to the Computer System hardware, includin
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, access to the Required Software is included as part of the Technology Fee. The Technology Fee is currently 2% of Gross Revenue. This means that franchisees will not have to pay separately for access to the Required Software, as it is covered by the ongoing Technology Fee.
However, franchisees are responsible for purchasing the necessary computer hardware to run the Required Software. The estimated pre-opening costs for the computer hardware range from $3,000 to $7,000. Additionally, franchisees may incur annual costs for updates and maintenance to the Computer System hardware, estimated to be between $500 and $1,500 per year.
Fitstop may require updates and upgrades to the Computer System and Required Software during the franchise term, and franchisees are responsible for the costs associated with these upgrades. While there are no contractual limitations on the frequency and cost of these upgrades, Fitstop states that they do not currently have any specific ongoing maintenance or support contract requirements other than working with their third-party Approved Supplier for billing/collection and related services. Franchisees should factor in these potential costs when evaluating the overall investment required to operate a Fitstop franchise.