What fees are subject to adjustment after the assignment or transfer of a Fitstop franchise?

According to Fitstop's 2024 Franchise Disclosure Document, several fees are subject to adjustment upon the assignment or transfer of a franchise. Specifically, the Royalty Fee, Marketing Fee, Technology Fee, and Annual Convention Fee will be adjusted to the then-prevailing percentage required for new Fitstop franchises at the time of the assignment or transfer. This means that a new franchisee taking over an existing location may be subject to a different fee structure than the original franchisee.

This adjustment to prevailing fees for new franchises could have a significant impact on the profitability of the franchise for the new owner. If the prevailing fees have increased since the original agreement, the new franchisee will face higher ongoing costs. It is important for prospective franchisees to understand the potential for these fee adjustments and to factor them into their financial projections.

It is also important to note that the Application Fee of $500 is subject to upward adjustment based on changes in the Consumer Price Index (CPI) between the date of the agreement and the date of the transfer. This means the initial cost to apply for a transfer may increase over time due to inflation. Prospective franchisees should inquire about the current prevailing rates for all adjustable fees to accurately assess the financial implications of acquiring a Fitstop franchise through transfer.