Does the estimated pre-opening cost for Fitstop's computer hardware include other electronics or security systems?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
s 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).
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 estimated pre-opening costs for computer hardware, ranging from $3,000 to $7,000, do not include other electronics or security systems. These additional costs are addressed separately in Item 7 of the FDD. Fitstop franchisees are expected to purchase new model computers, tablets, and a printer/scanner.
Fitstop also reserves the right to mandate that franchisees purchase a security system to protect their franchised business and to install a compliance monitoring system. The franchisee is responsible for complying with all payment card industry (PCI) and data security standard (DSS) requirements, including using required tools, systems, and vendors for ongoing PCI compliance.
Franchisees are also responsible for the costs associated with PCI compliance and data security issues, such as breaches and malware. They must alert Fitstop within 24 hours of any suspected or confirmed data security breach. While Fitstop does not typically require a compliance monitoring system, they reserve the right to implement one in the future, granting both the franchisee and Fitstop online access. Employees would be required to sign a waiver of their right to privacy regarding the use of such a system.