Is a Fitstop franchisee required to pay for Required Software directly to the Approved Supplier?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
13.4.2 In the event you are required to license and use any Required Software that is not covered by the Technology Fee above, then you must ensure that you pay our Approved Supplier directly for such licensing and other fees associated with that Required Software as and when required by that provider.
6.11 Required Software (including CMS) and Use of Approved Supplier for Billing/Collection and Point of Sale (POS) Software and/or Services. You must at your cost: (1) acquire and install the software necessary to access the CMS, as well as any other cloud-based or other software program, we require you license and/or use in connection with your Franchised Business (collectively, the "Required Software"); (2) pay all fees and costs to our then-current Approved Supplier, for such Required Software;
12.3 Right to Designate and Update List of Approved Supplier(s). We may, but are under no obligation, appoint oursevles and/or our affiliates or any other third party as an Apporved Supplier for one (1) or more Required Items associated with the Franchised Business upon prior written notice via the Manuals or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are generally required to pay the Approved Supplier directly for Required Software. Specifically, if the Required Software is not covered by the Technology Fee, the franchisee must pay the Approved Supplier directly for licensing and other associated fees.
Fitstop franchisees must acquire and install the software necessary to access the CMS (Content Management System) and any other cloud-based software programs that Fitstop requires for the operation of the franchise. Franchisees are obligated to pay all fees and costs to Fitstop's Approved Supplier for this Required Software.
Furthermore, Fitstop has the right to designate itself, its affiliates, or any other third party as the Approved Supplier for one or more Required Items associated with the franchise. This designation will be communicated to franchisees through the Manuals or in writing. This means Fitstop can change the payment structure or suppliers, potentially impacting costs and payment methods for the franchisee.