Who is the approved supplier that provides billing and collection services for Fitstop franchisees?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ult of an Approved Supplier's failure to deliver or delayed or incorrect delivery of any supplies ordered by you.
Section 13: Fees; Billing, Reporting and Records
13.1 Billing and Collection: Approved Supplier(s) and System Procedure(s).
- 13.1.1 Approved Supplier for Gross Revenue Collection, Billing and Remission of Funds to Franchisee. Unless we designate a different method in our Manuals or otherwise in writing, the Parties agree that we will designate an Approved Supplier to provide the following services on behalf of you and other System franchisees: (i) collection of membership fees and/or other Gross Revenue generated by the Franchised Business, as well as related merchant processing services; (ii) billing/invoicing services for the amounts due to us and/or any of our affiliates under this Agreement; and (iii) remission of the Gross Revenue, less any amounts due to us and/or our affiliates under this Agreement at the time of each such remission, to you. Our then-current Approved Supplier(s) for such services, like other Approved Suppliers, will be identified in writing by us via the Manuals or otherwise.
- 13.1.2 EFT Program Participation; Designated EFT Account. Regardless of your obligations under Section 13.1.1, you must at all times participate in our automatic debit/credit transfer program as specified by us in our Manuals or otherwise in writing (the "EFT Program") for the payment of any amounts due to us pursuant to this Agreement. You shall execute and deliver to us such documents and instruments as may be necessary to establish and maintain said automatic debit/credit transfer program, including all information and/or materials (i.e., voided check) necessary for us to identify and enroll your account in the EFT Program (your "Designated EFT Account").
- 13.2 Definition of "Gross Revenue". For the purposes of this Agreement, the term "Gross Revenue" shall mean the total amount of consideration, whether cash, credit, or payment in kind, received by you for all goods sold and services (including all membership fees and other revenue generated from the sale of Approved Services and Approved Products), including barter (exchange of tuition for services or products), and excluding refunds, uncollectible debts, taxes collected and paid to a tax authority, and tuition credits for staff children. There shall be deducted from Gross Revenue the price of goods returned by customers for exchange, provided that such returned goods shall have been previously included in Gross Revenue, and provided that the sales price of goods delivered to the customer in exchange shall be included in Gross Revenue. Gross Revenue shall not include the amount of any sales tax imposed by any federal, state, municipal, or other governmental authority directly on sales and collected from customers, provided that the amount thereof is added to the selling price or absorbed therein and actually paid by you to such governmental authority.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop will designate an approved supplier to provide billing and collection services. This supplier will handle the collection of membership fees and other gross revenues, provide billing/invoicing services for amounts due to Fitstop, and remit the gross revenue (less any amounts owed to Fitstop) to the franchisee. The specific approved supplier for these services will be identified in writing in Fitstop's manuals or other written communication.
Fitstop franchisees are required to participate in an automatic debit/credit transfer program (EFT Program) for the payment of amounts due to Fitstop under the Franchise Agreement, regardless of the billing and collection services provided by the approved supplier.
Franchisees are also obligated to use Fitstop's then-current Approved Supplier for billing and collection services related to all membership fees and other revenue generated by the franchised business. This supplier will remit the appropriate amounts to the franchisee, after deducting royalty fees, fund contributions, and other recurring amounts due to Fitstop under the agreement. If access to required software is included in the Technology Fee, the software provider will either provide login credentials directly or work with Fitstop to ensure the franchisee receives them.
It is important for prospective Fitstop franchisees to review the Fitstop manuals and any written notices to identify the specific approved supplier for billing and collection services and to understand the procedures for revenue collection, payment of fees, and participation in the EFT program.