factual

Is a Fitstop franchisee required to use only approved suppliers for Required Software?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

al statements, including profit and loss statements, that are reasonably requested by us.

  • 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; (3) acquire and install all other software required to operate the Franchise as directed by us; and (4) acquire and use computer hardware and other electronic equipment as set forth in the Manual(s) or otherwise in writing, whether prior to opening or thereafter (the "Computer System"); and (5) utilize our then-current Approved Supplier that will (a) provide billing and collection services with respect to all membership fees and other revenue generated by the Franchised Business, and (b) remit the appropriate amounts to you and other System franchisees, less the applicable Royalty Fees, Fund Contributions and other recurring amounts due under this Agreement. To the extent access to a given Required Software is afforded as part of your then-current Technology Fee, the Applicable Provider(s) of such Required Software will either (a) provide you with login credentials to initially access such software directly, or (b) work with us to ensure you are provided with said credentials.

You must (1) access and use the Required Software and the CMS to operate the Franchise strictly in accordance with our direction; (2) have permanent 24 hour internet access (subject to black out and telecommunication network difficulties); (3) submit reports electronically to us in a format compatible with the Required Software and the CMS; (4) keep the Required Software, the CMS and required computer hardware and electronic equipment secure from unauthorized use and in good working order and repair; (5) ensure that the Required Software, the CMS, and the data uploaded or downloaded thereon, is used only for their authorized purpose and are not modified, altered, varied, changed, copied, reproduced or reverse engineered; (6) comply with all of our reasonable requirements made from time to time relating to the use of Required Software and the CMS; (7) give us access at all times to your Computer System and Required Software, including providing details of any access passwords and other access codes required, to enable us to upload or download information and to monitor and audit the Franchise's data and reports; (8) enter all information onto the Required Software and the CMS as required by us and ensure all information required by us is inputted on receipt of the information as expediently as possible and in any case by 5 p.m. local standard time of the next calendar day of the request; and (9) upgrade the computer hardware and electronic equipment and the Required Software or other software necessary to access the Required Software and the CMS as we reasonably require.

©2024 Fitstop USA, Inc. The Required Software and the CMS must only be used by you and your employees in the course of operating the Franchise. You are responsible for the use, supervision, management and control of the

Required Software and CMS and must take all action reasonably within your control to ensure that the Required Software and CMS are protected at all times from misuse, damage, destruction or any form of unauthorized use. You must reasonably prevent your employees from disclosing or recording the username and password to the Required Software and the CMS.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, franchisees must acquire Required Software from Fitstop's approved suppliers. Specifically, franchisees must acquire and/or license and/or lease the Required Software that Fitstop designates in its manuals or in writing. This software is essential for building out the Franchised Business at the premises and operating it on an ongoing basis, in accordance with Fitstop's system standards and specifications.

Fitstop may designate itself, its affiliates, or any other third party as an Approved Supplier for Required Items, including software, with prior written notice. This gives Fitstop the flexibility to manage its supply chain and potentially benefit from rebates or financial incentives from suppliers, which it is entitled to retain.

Furthermore, if franchisees are required to license and use Required Software not covered by the Technology Fee, they must pay the Approved Supplier directly for licensing and other associated fees. Franchisees are also obligated to install and use computer hardware and software that meets Fitstop's specified functionality and specification requirements, and to upgrade such systems as directed by Fitstop. This ensures uniformity and compatibility across all Fitstop franchises, but it also means franchisees have limited choice in selecting their software and suppliers.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.