Who designates the approved supplier for gross revenue collection, billing, and remission of funds to Fitstop franchisees?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Unless we designate a different method in our Manuals or otherwise in writing, the Parties agree that we will designate an Approved Supplier to provide the following services on behalf of you and other System franchisees: (i) collection of membership fees and/or other Gross Revenue generated by the Franchised Business, as well as related merchant processing services; (ii) billing/invoicing services for the amounts due to us and/or any of our affiliates under this Agreement; and (iii) remission of the Gross Revenue, less any amounts due to us and/or our affiliates under this Agreement at the time of each such remission, to you.
Our then-current Approved Supplier(s) for such services, like other Approved Suppliers, will be identified in writing by us via the Manuals or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop designates the approved supplier responsible for gross revenue collection, billing, and remission of funds to its franchisees. Unless a different method is specified in Fitstop's manuals or in writing, Fitstop will select an approved supplier to handle the collection of membership fees and other gross revenue, provide billing/invoicing services for amounts due to Fitstop or its affiliates, and remit the gross revenue (less any amounts owed to Fitstop) to the franchisee.
This means that as a Fitstop franchisee, you will not have the autonomy to choose your own vendor for these financial services. Instead, you must use the supplier that Fitstop has designated. Fitstop identifies its approved suppliers in writing, either through its manuals or other written communication.
This arrangement ensures consistency and standardization across all Fitstop franchise locations in how revenue is managed and reported. It also allows Fitstop to maintain oversight and control over the financial processes within its franchise system. As a prospective franchisee, it is important to understand that you are obligated to use Fitstop's designated supplier for these services and to inquire about the terms and conditions of that supplier's services, including any associated fees or charges.