What fees are franchisees required to pay Fitstop for project design and site approval?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees may be required to pay project design and site approval fees. Specifically, Fitstop may organize the build-out of the premises at their discretion. Whether Fitstop or the franchisee undertakes the build-out, Fitstop is entitled to review, approve, and confirm the design and build-out of the premises. In exchange for these services, the franchisee must pay Fitstop any reasonable project design and site approval fees that Fitstop demands.

This means that if Fitstop is involved in the design and approval process of the franchisee's location, Fitstop can charge the franchisee for these services. The fees must be reasonable, but the FDD does not specify a fixed amount or a range for these fees. It is important to note that these fees are only applicable to the initial build-out of the premises and not to the purchase of an existing franchise or the refurbishment or upgrade of the premises.

Prospective Fitstop franchisees should clarify with Fitstop what constitutes "reasonable" project design and site approval fees. They should also inquire about the typical range of these fees, the factors that influence the cost, and whether Fitstop provides an estimate before the services are rendered. Understanding these costs upfront is crucial for budgeting and financial planning when establishing a Fitstop franchise.