Who bears the cost of acquiring and installing the Required Software for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.11 Required Software (including CMS) and Use of Approved Supplier for Billing/Collection and Point of Sale (POS) Software and/or Services. You must at your cost: (1) acquire and install the software necessary to access the CMS, as well as any other cloud-based or other software program, we require you license and/or use in connection with your Franchised Business (collectively, the "Required Software"); (2) pay all fees and costs to our then-current Approved Supplier, for such Required Software; (3) acquire and install all other software required to operate the Franchise as directed by us; and (4) acquire and use computer hardware and other electronic equipment as set forth in the Manual(s) or otherwise in writing, whether prior to opening or thereafter (the "Computer System"); and (5) utilize our then-current Approved Supplier that will (a) provide billing and collection services with respect to all membership fees and other revenue generated by the Franchised Business, and (b) remit the appropriate amounts to you and other System franchisees, less the applicable Royalty Fees, Fund Contributions and other recurring amounts due under this Agreement. To the extent access to a given Required Software is afforded as part of your then-current Technology Fee, the Applicable Provider(s) of such Required Software will either (a) provide you with login credentials to initially access such software directly, or (b) work with us to ensure you are provided with said credentials.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with acquiring and installing the Required Software. Specifically, the franchisee must acquire and install the software necessary to access the CMS (Content Management System), as well as any other cloud-based or other software program that Fitstop requires them to license and/or use in connection with their Franchised Business. The franchisee is also responsible for paying all fees and costs to Fitstop's then-current Approved Supplier for such Required Software.
This means that a prospective Fitstop franchisee needs to factor in these software costs when evaluating the overall investment required to start and operate the franchise. These costs are in addition to the technology fees that may already be in place. The franchisee is also responsible for acquiring and installing all other software required to operate the franchise as directed by Fitstop, as well as acquiring and using computer hardware and other electronic equipment as set forth in the Manuals or otherwise in writing, whether prior to opening or thereafter.
Furthermore, the franchisee is obligated to upgrade computer hardware and electronic equipment, as well as the Required Software or other software necessary to access the Required Software and the CMS, as Fitstop reasonably requires. This implies that franchisees may face ongoing costs for software and hardware upgrades throughout the term of their franchise agreement. It is important for potential franchisees to understand the potential frequency and magnitude of these upgrade costs to accurately assess the financial viability of the Fitstop franchise.