What is the definition of 'Computer System' in the Fitstop FDD?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
unless we agree otherwise in writing, we expect that you will purchase new model computer(s), tablet(s) and a printer/scanner, consistent with any more specific directives set forth in the Manuals.
As of the Issue Date, we estimate that the pre-opening costs associated with acquiring the required computer hardware components of our System's computer system ("Computer System") will between $3,000 and $7,000. Please note that this range does not account for any other electronics or security system you must and/or determine to purchase in connection with the Franchised Business buildout, which are covered more fully in Item 7 above. We expect that access to all current Required Software will be afforded to our System franchisees as part of the Technology Fee (which is currently 2% of Gross Revenue as detailed more fully in Item 6).
We will have independent and electronic access to the information and data collected or generated by the Required Software and other Computer System components. There are no contractual limits on our rights to do so. We may require updates and upgrades to the Computer System and/or Required Software from time to time during the term of the franchise agreement. We require updates and upgrades to your hardware, software and other Computer System components as such become available, at your expense, upon providing you with reasonable advance notice via the Manuals or otherwise in writing (i.e., typically 60 or more days). There are no contractual limitations to the frequency and cost of the obligation to upgrade and maintain these items. With that said, we do not currently have any specific ongoing maintenance and/or support contract requirements other than working with our third-party Approved Supplier for billing/collection and related services. We estimate that you may spend an average of between $500 and $1,500 (per year from the date you acquire the same) on annual updates and maintenance to the Computer System hardware, includin
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the term "Computer System" refers to the computer hardware components of Fitstop's system. While the FDD does not provide a specific definition of the term, it does state that Fitstop expects franchisees to purchase new model computers, tablets, and a printer/scanner.
The FDD mentions that the estimated pre-opening costs for acquiring the required computer hardware components range from $3,000 to $7,000. This range does not include other electronics or security systems that franchisees may need to purchase. Franchisees are expected to have access to all current Required Software as part of the Technology Fee, which is currently 2% of Gross Revenue.
Fitstop retains independent and electronic access to the data collected by the Required Software and other Computer System components. Fitstop may require updates and upgrades to the Computer System and Required Software, with franchisees bearing the expense of hardware, software, and other Computer System component upgrades. The FDD estimates that franchisees may spend an average of $500 to $1,500 per year on annual updates and maintenance to the Computer System hardware, including non-material upgrades.