Who bears the cost of complying with changes to the Fitstop Franchise System?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
11.5 You agree that we may change the Franchise System including, without limitation, brand standards, the adoption and use of new or modified trademarks and service marks, Confidential Information, products, and services. You agree to be bound by these changes and promptly comply with all such additions, modifications, and changes at your sole cost and expense except as this Agreement otherwise permits herein.
11.4.6 You shall obtain and maintain at your expense all licenses and permits necessary for the operation of the Franchise.
11.4.7 You shall comply immediately with any and all orders, laws, regulations, rules, and directives of any federal, state, county or municipal authorities with regard to the Franchise, including OSHA and other health or safety requirements, and shall notify us within twenty four (24) hours of legal requirements or developments affecting the Franchise and of any government orders, the reasons therefore, and the corrective action taken or to be taken by you.
6.8 Telephone and Communications Systems. You must, if requested in writing by us at any time during the Term, at your cost: (1) install and use in the Franchise telephone and other communications systems (including point of sale hardware and software) specified by us for the operation of the Franchise; (2) change or upgrade any telephone and communications systems used in the Franchise which we consider obsolete or superseded, including installation of new telephone and communication systems specified by us; and (3) ensure that all telephone and communications systems are secure from unauthorized access or use.
©2024 Fitstop USA, Inc. 6.9 Computer System; Required Software. You must at your cost: (1) install and use in the Franchise computer hardware and software which satisfies the functionality and specification requirements specified by us; (2) acquire and maintain software licenses in respect to all Required Software, whether covered by the Technology Fee or otherwise; and (3) change or upgrade any computer hardware or software used in the Franchise which we reasonably consider is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by us.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is generally responsible for the costs associated with complying with changes to the Fitstop Franchise System. This includes changes to brand standards, the adoption and use of new or modified trademarks and service marks, confidential information, products, and services.
The franchisee is expected to comply promptly with all additions, modifications, and changes to the Fitstop system at their sole cost and expense, unless the Franchise Agreement explicitly states otherwise. This obligation extends to obtaining and maintaining all necessary licenses and permits for operating the franchise, as well as complying with all orders, laws, regulations, rules, and directives from federal, state, county, or municipal authorities.
Furthermore, the franchisee is responsible for the costs associated with telephone and communication systems, including installation, upgrades, and ensuring security. They must also cover the expenses for computer hardware and software, including acquiring and maintaining software licenses and upgrading obsolete systems. This means that if Fitstop decides to implement a new software platform or upgrade its communication systems, the franchisee will bear the financial burden of these changes. This could involve significant and unexpected costs, so prospective franchisees should factor these potential expenses into their financial planning.