Can Fitstop change the Approved Supplier for gross revenue collection?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
13.1.1 Approved Supplier for Gross Revenue Collection, Billing and Remission of Funds to Franchisee. Unless we designate a different method in our Manuals or otherwise in writing, the Parties agree that we will designate an Approved Supplier to provide the following services on behalf of you and other System franchisees: (i) collection of membership fees and/or other Gross Revenue generated by the Franchised Business, as well as related merchant processing services; (ii) billing/invoicing services for the amounts due to us and/or any of our affiliates under this Agreement; and (iii) remission of the Gross Revenue, less any amounts due to us and/or our affiliates under this Agreement at the time of each such remission, to you.
Our then-current Approved Supplier(s) for such services, like other Approved Suppliers, will be identified in writing by us via the Manuals or otherwise.
- 13.1.2 EFT Program Participation; Designated EFT Account. Regardless of your obligations under Section 13.1.1, you must at all times participate in our automatic debit/credit transfer program as specified by us in our Manuals or otherwise in writing (the "EFT Program") for the payment of any amounts due to us pursuant to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has the authority to designate an Approved Supplier for gross revenue collection, billing, and fund remission to franchisees. Unless Fitstop specifies a different method in its manuals or in writing, they will designate an Approved Supplier to handle the collection of membership fees and other gross revenue, provide related merchant processing services, manage billing/invoicing for amounts due to Fitstop or its affiliates, and remit the gross revenue (less any amounts owed to Fitstop) to the franchisee.
Fitstop identifies the Approved Suppliers in writing via the manuals or other written communication. Franchisees are obligated to participate in Fitstop's automatic debit/credit transfer program (EFT Program) for payments due to Fitstop, regardless of the Approved Supplier arrangement. This means that Fitstop can change the Approved Supplier for gross revenue collection, provided they notify franchisees through the manuals or in writing.
For a prospective Fitstop franchisee, this means that the company controls the selection of the vendor that processes revenue and handles payments. While franchisees must use the designated Approved Supplier, Fitstop shoulders the responsibility of informing franchisees about any changes to the Approved Supplier through official channels like the manuals or written notices. Franchisees should stay informed about any updates to the Approved Suppliers to ensure compliance and avoid any disruptions in revenue collection and payment processes.