Can Fitstop designate another method for remitting 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).
All Fund Contributions are non-refundable upon payment, and we will account separately for all sums paid to the Fund.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop may designate another method for remitting Fund Contributions. The standard procedure is that Fund Contributions, which are 2% of Gross Revenue, are remitted at the same time and in the same manner as Royalty Fees. However, Fitstop can change this method.
Fitstop must provide at least 30 days' prior written notice via the Manual(s) or otherwise to implement a different remittance method. This ensures that franchisees are informed of any changes to the payment process in advance.
It is important for prospective Fitstop franchisees to understand that Fund Contributions are non-refundable upon payment. Therefore, franchisees should ensure they are aware of the current remittance method and any potential changes to avoid any confusion or issues with payments.