Does the Fitstop FDD Item 6 outline any conditions under which the other fees for a Fitstop franchise might be waived or reduced?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ated Fees |
- $5,000 if a System franchisee wishes to amend the territory and/or site selection area to a different geographical area wherein it has located a site it wishes to propose and, if approved by us, secure;
- a reduced fee amounting to $750 in the particular situation where an existing System franchisee is (a) an individual that wishes to assign to a wholly-owned entity that will serve as the "Franchisee" moving forward, or (b) looking to effectuate a transfer in the event of death or disability, which will be used to help defray the administrative/legal costs that we will incur in this context; or
- $25,000 (per franchise) in all other assignments where System franchisee wishes to transfer the franchise agreement, Franchised Business or its operating assets and/or any ownership interest in the Franchisee entit
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Item 6 addresses the possibility of reduced fees specifically related to transfer-related fees. The standard fee for transferring a franchise agreement is $25,000. However, Fitstop may reduce the fee to $750 in particular situations.
Specifically, the reduced fee applies if an existing Fitstop franchisee is an individual who wishes to assign the franchise to a wholly-owned entity that will serve as the franchisee moving forward. It also applies if the transfer occurs due to the death or disability of the franchisee. This reduced fee is intended to help cover the administrative and legal costs that Fitstop will incur in these situations.
Outside of these specific transfer-related scenarios, the FDD does not specify any other conditions under which Fitstop might waive or reduce other fees. Prospective franchisees should inquire directly with Fitstop about the possibility of fee reductions or waivers under other circumstances.