What is the estimated range for the security deposit and other pre-opening amounts under the lease for approved premises for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| YOUR ESTIMATED INITIAL INVESTMENT | ||||
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Security Deposit and other Pre-Opening Amounts under Lease for Approved Premises5 | $8,000 to $75,000 | As arranged between you and the landlord. | As negotiated and agreed in the lease | Third-Party Landlord |
Source: Item 7 — TEM 7: ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the estimated initial investment for the security deposit and other pre-opening amounts under the lease for approved premises ranges from $8,000 to $75,000. These amounts are arranged between the franchisee and the landlord and are negotiated and agreed upon in the lease. The payments are made to the third-party landlord.
The FDD notes that the lease terms, including rent, can vary significantly based on factors such as demand in the designated territory, the population and demographics of the surrounding region, and the franchisee's negotiation with the landlord. The security deposit may be refundable, depending on the landlord's terms.
The low end of the estimate assumes a location in a suburban or rural area, with a security deposit equal to 1-2 months' rent. The high end of the estimate applies to premises in higher-end real estate markets or densely populated areas, where the security deposit could be 2-3 months' rent. These estimates are based on Fitstop's affiliate's experience in opening franchised locations in California, their affiliate franchisor's experience in Australia, and information from third-party real estate brokers and consultants.