What are some examples of 'other amounts due' to Fitstop besides fees, that if unpaid, can lead to termination?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
16.2 Termination Upon Notice and Failure to Cure. In addition to the grounds for immediate termination set forth above, we can terminate this Agreement for the following violations if the violation is not cured within 30 calendar days after we submit to you at the address indicated in the Franchise Summary a notice of violation:
16.2.1 If you fail to pay any fees or other amounts due to us, our affiliates or any Approved Supplier we designate within the time periods specified for such payments b
13.5 Fund Contribution(s). You shall contribute to our brand development Fund in an amount equal to two percent (2%) of the Gross Revenue generated by the Franchised Business, which shall be billed and collected at the same time and manner as your recurring Royalty Fee under Section 13.4 above (your "Fund Contribution").
13.6 Annual Conference Contribution(s). You may be required to remit to ua an amount equal to $150 per month as a contribution to defray the costs associated with any annual conference we determine to establish and conduct for System Business owners (an "Annual Conference"), which shall be payable in the same manner as your Royalty Fee on the date we designate each calendar month once you are required to have your Franchised Business open and operating.
©2024 Fitstop USA, Inc. 13.7 Other Fees Payable to Us and Local Marketing Requirement ("LMR"). You must ensure that all payments are timely made and/or payable out of your Designated EFT Account to cover any
and all Training Fees (whether for Instructor Training for a new/replacement Auhtorized Instructor or fee applicable to any other additional/remedial training, as set forth in our Manuals or otherwise in writing), Transfer Fee(s), Renewal Fee, Local Marketing Requirement and/or other marketing/advertising and/or promotional expenditures, to the extent such amounts are payable to us and/or any of our Approved Suppliers.
You shall execute and deliver to us such documents and instruments as may be necessary to establish and maintain said automatic debit/credit transfer program, including all information and/or materials (i.e., voided check) necessary for us to identify and enroll your account in the EFT Program (your "Designated EFT Account").
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, failure to pay certain amounts beyond typical fees can result in the termination of the franchise agreement if not cured within 30 days of notice. These include contributions to the brand development fund, which is 2% of gross revenue, and contributions to the annual conference, which is $150 per month. Additionally, franchisees must cover training fees, whether for initial or supplementary training, and local marketing requirements.
Fitstop requires franchisees to ensure timely payments for all obligations, including those to approved suppliers, using a designated EFT account. This highlights the importance of maintaining sufficient funds in the designated account to cover all required payments. The franchisor retains the right to terminate the agreement if these payments are not made within the specified time frames.
Prospective Fitstop franchisees should be aware of these financial obligations and incorporate them into their business planning. Failure to meet these payment obligations can lead to a notice of violation and, if not resolved within 30 days, termination of the franchise agreement. This underscores the need for careful financial management and adherence to the payment terms outlined in the franchise agreement.