Can Fitstop charge a Training Fee for Instructor Training for replacement or new personnel?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
proved Services at or in connection with the Franchised Business. The Parties agree and acknowledge that: (i) we will provide Instructor Training to up to five (5) prospective Authorized Instructors that you expect will be providing the Approved Services when the Franchised Business opens and commences operation (the "Initial Instructor(s)") tuition-free as part of your Initial Franchise Fee; and (ii) you must ensure that any replacement or new personnel you wish to serve as an Authorized Instructor for the Franchised Business both (a) are noticed to us in writing, and (b) completes the Instructor Training prior to providing any Approved Services in connection with the Franchised Business, which we will provide via our then-current remote training or otherwise and may charge our then-current Training Fee for such Instructor Training.
- 4.5 If, at any time, you request or we determine that you require any additional training beyond what this Agreement describes herein, we will provide at our then-current training fee (our "Training Fee") for the kind of training or instruction requested by you or required hereunder (collectively, the "Additional Training"), which will be set forth and updated in the Manual(s) from time to time as we determine appropirate.
- 4.6 We may convene seminars and supplementary trainings for the network of franchisees whenever we reasonably consider it necessary or appropriate. The location, agenda, duration, and all procedures and formats of each seminar and supplementary training are determined by us.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop provides initial instructor training for up to five prospective instructors without tuition as part of the initial franchise fee. However, Fitstop can charge a training fee for replacement or new personnel requiring instructor training.
The FDD states that any replacement or new personnel that a franchisee wants to serve as an Authorized Instructor must be noticed to Fitstop in writing and complete the Instructor Training before providing any approved services. Fitstop will provide this training remotely or otherwise and may charge its then-current Training Fee for such Instructor Training.
Fitstop also states that franchisees must ensure all payments are made to cover any and all Training Fees, whether for Instructor Training for a new/replacement Authorized Instructor or fees applicable to any other additional/remedial training, as set forth in their manuals or otherwise in writing. This means that franchisees should budget for ongoing training expenses as they hire new instructors or replace existing ones, as these costs can impact the profitability of the franchise.
It is important for prospective Fitstop franchisees to understand the costs associated with training new instructors and to factor these costs into their financial projections. Franchisees should also inquire about the current Training Fee for Instructor Training to accurately estimate these expenses.