Who bears the cost of installing and using computer hardware and software specified by Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
for any reason, to execute a transfer of any communications number to be held by us.
- ©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and (3) change or upgrade any computer hardware or software used in the Franchise which we reasonably consider is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by us.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
suppliers which we may approve. You must allow us to have access to your computer hardware and software and to all information that is stored in it including by any instantaneous means of telecommunication or internet protocol, unless prohibited by state or federal law. If we introduce a pointof-sale system, you must install the point-of-sale system approved by us that meets our performance standards. You must permit us or our duly authorized agents at all times, and from time to time, to copy any information contained in your point-of-sale system to a computer system operated by us, our nominee, or agents. You must ensure that connectivity is maintained and available at all times to allow all data generated by the point-of-sale system to be captured by us. If for any reason copying is not possible, then without in any way limiting the obligations herein, we may require you to download the information required by us into machine readable information compatible with the system operated by us.
- 6.10 Right to Audit and/or Inspect. In addition, we reserve the right to audit your financial information quarterly upon reasonable demand and require that you provide to us on or before April 15 of each year a copy of the Franchise's financial statements, including profit and loss statements, that are reasonably requested 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 responsible for the costs associated with computer hardware and 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 obligated to upgrade any computer hardware or software that Fitstop reasonably considers obsolete or superseded. This includes the installation of new hardware or software that meets the current functionality and specification requirements set by Fitstop. Fitstop retains the right to require franchisees to purchase computer hardware or license software directly from them or from approved suppliers.
The franchisee must also acquire and install the software necessary to access the CMS (Content Management System), along with any other cloud-based or software programs that Fitstop requires for the franchised business. They are responsible for paying all fees and costs to Fitstop's approved supplier for this required software. Additionally, franchisees must acquire and use computer hardware and other electronic equipment as specified in Fitstop's manuals or in writing, both before opening and afterward.
Fitstop also requires franchisees to utilize their then-current Approved Supplier for billing and collection services related to membership fees and other revenue. This supplier will remit the appropriate amounts to the franchisee and other Fitstop franchisees, after deducting Royalty Fees, Fund Contributions, and other recurring amounts due under the Franchise Agreement. Access to certain Required Software may be provided as part of the Technology Fee, with login credentials supplied either directly by the software provider or through Fitstop.