What is the amount of the initial franchise fee for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
chise Fee
You must pay us an initial franchise fee amounting to $50,000 (the "Initial Franchise Fee"), which is due in a lump sum immediately upon execution of your Franchise Agreement. The Initial Franchise Fee is deemed fully earned upon execution of your Franchise Agreement, and is not refundable under any circumstances.
In the event you wish to develop multiple Franchised Businesses, then you may be offered and awarded the right to open and operate such businesses by either (a) entering into a separate form of our then-current franchise agreement for each such location, or (b) indicating that a single form of franchise agreement will govern more than one (1) Franchised Business in a form of exhibit or addendum to your initial Franchise Agreement at the time it is executed. The Initial Franchise Fee shall be due in connection with each Franchised Business you are awarded to develop, unless we agree otherwise in writing, and all other disclosures above will apply to such payments.
We expect and intend to impose the Initial Franchise Fee above uniformly on our new System fr
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the initial franchise fee is $50,000. This fee is paid in a lump sum when the Franchise Agreement is executed. Fitstop considers the initial franchise fee fully earned upon the Franchise Agreement's execution, and it is non-refundable under any circumstances.
If a franchisee wants to develop multiple Fitstop locations, they must pay the initial franchise fee for each location, unless Fitstop agrees otherwise in writing. Fitstop intends to impose this initial franchise fee uniformly on all new franchisees.
This fee provides the franchisee with the right to operate a Fitstop franchise and access the Fitstop system, brand, and support. It is important for prospective franchisees to understand that this fee is non-refundable, regardless of whether the franchise ever opens or becomes successful. This is a common practice in the franchise industry, as the initial fee compensates the franchisor for the initial costs of granting the franchise and providing initial training and support.