From what account must payments be made to cover Training Fees for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
which shall be payable in the same manner as your Royalty Fee on the date we designate each calendar month once you are required to have your Franchised Business open and operating.
- ©2024 Fitstop USA, Inc. 13.7 Other Fees Payable to Us and Local Marketing Requirement ("LMR"). You must ensure that all payments are timely made and/or payable out of your Designated EFT Account to cover any
and all Training Fees (whether for Instructor Training for a new/replacement Auhtorized Instructor or fee applicable to any other additional/remedial training, as set forth in our Manuals or otherwise in writing), Transfer Fee(s), Renewal Fee, Local Marketing Requirement and/or other marketing/advertising and/or promotional expenditures, to the extent such amounts are payable to us and/or any of our Approved Suppliers.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must ensure that all payments for Training Fees are made from their Designated EFT Account. This includes fees for instructor training for new or replacement instructors, as well as any additional or remedial training.
The Designated EFT Account is established by the franchisee to facilitate automatic debit/credit transfers for payments to Fitstop. Franchisees must provide the necessary information, such as a voided check, to enroll their account in the EFT Program. This system ensures that Fitstop can collect fees in a timely manner.
This requirement means that prospective Fitstop franchisees need to budget and plan to have sufficient funds available in their Designated EFT Account to cover these training expenses. Failure to maintain adequate funds in this account could lead to late payment penalties or other consequences as outlined in the franchise agreement. This is a standard practice in franchising, allowing franchisors to efficiently manage and collect necessary fees.