For a Fitstop franchise, what is the estimated range for rent to be paid for 4 months after opening, and when is this payment due?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| Professional Fees | $1,000 to $10,000 | As arranged | As invoiced | Third-Party Professional(s) – Lawyer and Accountant |
|---|---|---|---|---|
| Music Licensing | $500 to $1,000 | As arranged | Ongoing basis | Approved Supplier |
| Subscription10 | ||||
| (for play, not synch) | ||||
| Other Miscellaneous Pre- Opening Expenditures | $0 to $5,000 | As arranged | As incurred | Approved Supplier(s) and Third-Party Suppliers/Providers |
| Rent – 4 Months after | $20,000 to $50,000 | Lump sum | Prior to opening | Third-Party Landlord |
| opening11 |
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 rent for the first four months after opening ranges from $20,000 to $50,000. This payment is required in a lump sum prior to opening the franchise. The actual rent amount will depend on factors such as the size, quality, and location of the premises, as well as local market conditions. The standard Fitstop franchise offering assumes a premises size between 1,800 and 3,000 square feet. However, for premium locations in urban areas, franchisees may choose to spend more, subject to the franchisor's approval.
These figures are estimates, and Fitstop does not guarantee that franchisees will not have additional expenses. Costs can vary based on how well the franchisee follows the Fitstop system, their management skills, local economic conditions, the market for fitness services, and competition. The estimate does not account for debt services or any salary or compensation for the Franchise Operator or any other Franchise Owner.
Prospective Fitstop franchisees should carefully review these figures in light of local conditions and the local economy, and consult with their accountant. The FDD notes that the estimated investment ranges were prepared based upon various sources of information, including the experience of Fitstop's affiliates, information from third-party Approved Suppliers, and data from real estate brokers. Franchisees are expected to secure an approved Premises and open the Franchised Business within the timelines set forth in the Franchise Agreement, ensuring the Premises is built out in accordance with Fitstop's standards and using Approved Suppliers for certain Required Items.