Is a Fitstop franchisee required to acquire and maintain software licenses?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- ©2024 Fitstop USA, Inc. 6.9 Computer System; Required Software. You must at your cost: (1) install and use in the Franchise computer hardware and software which satisfies the functionality and specification requirements specified by us; (2) acquire and maintain software licenses in respect to all Required Software, whether covered by the Technology Fee or otherwise; and (3) change or upgrade any computer hardware or software used in the Franchise which we reasonably consider is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by us.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must acquire and maintain software licenses for all required software, regardless of whether these licenses are covered by the Technology Fee. This includes installing and using computer hardware and software that meets Fitstop's specified functionality and specification requirements. Franchisees are also obligated to upgrade any computer hardware or software that Fitstop deems obsolete or superseded, which may involve installing new hardware or software that meets the current requirements.
Fitstop requires franchisees to access and use the Required Software and the CMS (presumably a content management system) to operate the franchise according to Fitstop's directions. This includes having permanent 24-hour internet access, submitting reports electronically in a compatible format, keeping the software and hardware secure, and ensuring the software is used only for its authorized purpose. Franchisees must also allow Fitstop access to their computer system and software, including providing passwords, to enable the franchisor to monitor and audit data and reports.
Furthermore, franchisees are responsible for paying the Approved Supplier directly for licensing and other fees associated with any Required Software not covered by the Technology Fee. This ensures that Fitstop franchisees remain compliant with software licensing and operational requirements, with the costs borne by the franchisee. These requirements ensure that all Fitstop locations operate using standardized and up-to-date systems, but it also represents an ongoing cost and responsibility for the franchisee.