Can Fitstop change the method for remitting Brand Development Fund Contributions?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You will be required to contribute to the Fund an amount equal to two percent (2%) of the Gross Revenue of the Franchised Business ("Fund Contributions"), which shall be remitted to us at the same time and in the same manner as your Royalty Fees (unless we designate another method upon at least 30 days' prior written notice via the Manual(s) or otherwise).
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop can designate a different method for franchisees to remit Brand Development Fund contributions. The standard procedure is that these contributions, which are 2% of the Franchised Business's Gross Revenue, are remitted at the same time and in the same manner as the Royalty Fees.
However, Fitstop retains the right to change this remittance method. To do so, Fitstop must provide franchisees with at least 30 days' prior written notice. This notice will be communicated either through the Manual(s) or via other written means.
This flexibility allows Fitstop to adapt its collection processes as needed, but it also means franchisees must stay informed of any changes to avoid potential compliance issues. Franchisees should pay close attention to updates in the Manuals and any direct communications from Fitstop regarding payment procedures.