Who bears the cost of installing the required components of the Computer System and Required Software for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- ©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and (3) change or upgrade any computer hardware or software used in the Franchise which we reasonably consider is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by us.
For the purposes of this Section, we may, at any time during the Term, require you to purchase computer hardware or license software specified by us directly from us or, subject to law, certain
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 covering the costs associated with the computer system and required software. Specifically, the franchisee must install and use computer hardware and software that meets Fitstop's functionality and specification requirements at their own expense. This includes acquiring and maintaining the necessary software licenses, regardless of whether these are covered by the Technology Fee.
Furthermore, the franchisee is also responsible for any changes or upgrades to the computer hardware or software that Fitstop deems obsolete or superseded. This includes the installation of new hardware or software that meets the current functionality and specification requirements. Fitstop has the right to specify that franchisees purchase computer hardware or license software directly from them or from certain approved suppliers, subject to law.
In practical terms, this means a prospective Fitstop franchisee needs to budget not only for the initial purchase and installation of the computer system and software but also for ongoing maintenance, upgrades, and licensing fees. These costs can potentially impact the profitability of the franchise, especially if frequent upgrades or changes are required by Fitstop. It is important for potential franchisees to clarify with Fitstop the typical lifecycle of the computer systems and software, as well as the estimated costs of upgrades and maintenance, to accurately assess the financial implications.