When is the Fitstop Assignment/Transfer Fee of $25,000 due?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
or by operation of law), directly, indirectly, or contingently any interest in this Franchise without our express written consent, and then only in accordance with the express limitations of this Section.
- 15.2 You shall pay an Assignment/Transfer Application Fee ("Application Fee") of $500.00 to us per application to assign or transfer and then upon approval, you, or if agreed upon between the parties, the subsequent franchisee must pay the Assignment/Transfer Fee ("Transfer Fee") of $25,000.00 before or at the time of transfer or assignment to a new franchisee.
- 15.3 You shall notify us in writing of the terms and conditions of any proposed transfer, including, but not limited to the interest proposed to be transferred, the purchase price or other consideration to be received therefore, any credit or financing terms being extended by the seller, the date of the proposed transfer, and all other pertinent provisions of the proposed transfer.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee seeks to assign or transfer their franchise to a new franchisee, they must first pay an Assignment/Transfer Application Fee of $500. After Fitstop approves the transfer, either the current franchisee or the incoming franchisee (as agreed upon by both parties) is responsible for paying the Assignment/Transfer Fee of $25,000.
The $25,000 Transfer Fee is due either before or at the exact moment the franchise is transferred or assigned to the new franchisee. This fee is separate from the initial $500 application fee required to initiate the transfer process.
It's important to note that the initial $500 application fee is non-refundable but will be credited towards the $25,000 transfer fee if the transfer is approved. However, the application fee may be subject to upward adjustment based on changes in the Consumer Price Index from the agreement date to the transfer date. This means the actual amount of the application fee could increase over time due to inflation.