factual

How will Fitstop communicate changes to the Technology Fee?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

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and (3) change or upgrade any computer hardware or software used in the Franchise which we reasonably consider is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by us.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

Based on the 2024 Fitstop Franchise Disclosure Document, the document does not explicitly state how Fitstop will communicate changes to the Technology Fee. However, the FDD does state that franchisees must install and use computer hardware and software that meets the functionality and specification requirements specified by Fitstop. Franchisees must also acquire and maintain software licenses for all required software, whether covered by the Technology Fee or otherwise, and change or upgrade any computer hardware or software used in the Franchise which Fitstop reasonably considers is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by Fitstop.

Given that Fitstop can require franchisees to upgrade or change their computer hardware and software, it is likely that Fitstop would communicate changes to the Technology Fee through written notice, potentially via email or through the online system. The FDD also mentions that Fitstop may develop general marketing, advertising, or promotional activities or campaigns for all franchises in the network, and franchisees will have access to marketing, promotional, and presentation material including template emails and scripts via the online system and Manual(s).

A prospective Fitstop franchisee should ask the franchisor about the specific methods and frequency of communication regarding changes to the Technology Fee, as well as any potential impact on the franchisee's technology costs and operational procedures. It would also be prudent to inquire about the typical lifespan of required hardware and software to anticipate future upgrade expenses.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.