Can Fitstop designate a different payment interval for the Technology Fee other than the Royalty Fee schedule?

According to Fitstop's 2024 Franchise Disclosure Document, the Technology Fee, which is 2% of Gross Revenue as of the date of the Franchise Agreement, is generally collected at the same time and in the same manner as the Royalty Fees. However, Fitstop retains the right to designate a different payment interval for the Technology Fee.

This means that while the Technology Fee is typically collected alongside the Royalty Fees, Fitstop can change this arrangement. This change would be communicated through the Manuals or in writing, providing franchisees with official notice of the adjusted payment schedule.

For a prospective Fitstop franchisee, this implies a need to stay informed about any updates to the payment terms. Regularly reviewing the Manuals and any written communications from Fitstop is crucial to ensure compliance with the current payment schedule for the Technology Fee. This flexibility allows Fitstop to adjust its financial operations as needed, which could impact the franchisee's cash flow management.