Is the Fitstop franchisee required to use the POS software specified by the franchisor?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| Training Fee(s) | Our then-current training fee for the type of training requested or other assistance/training requested by you and/or required under your Franchise Agreement (our "Training Fee") Currently, our Training Fee(s) are as follows: (i) $1,500 for the training that we provide and afford access to each individual that you wish to engage and appoint as an Authorized Instructor | On demand and as directed by us. | Please see Item 11 of this Disclosure Document for additional information. As previously noted in Item 1, as of the Issue Date we are willing to provide the System Instructor Training remotely to you and up to four (4) additional individuals that you determine to engage and wish to appoint as your initial Authorized Instructors of the Franchised Business, provided these individuals complete such training before undertaking or performing any Approved Services to any Franchised Business clientele. |
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| that will be eligible to provide Approved Services at your Franchised Business (the "Instructor Training"); and (ii) $500/day per trainer utilized in connection with all other training we provide beyond the Initial Training Program we conduct with you (plus any out-of-pocket costs we incur) | |||
| Technology Fee | Our then-current technology fee for any technology and related products/services we determine to associate with our then-current System (the "Technology Fee") Currently, our Technology Fee amounts to: (i) 2% of Gross Revenue generated by your Franchised Business over the preceding reporting period; and (ii) if applicable, an additional $12 to $15 per month for a second and each additional System-associated email account provided to or requested by System franchisee. | Same time and manner as your Royalty Fee | Currently, your Technology Fee is used to cover and/or defray the costs associated with various technology that we have associated and, in some cases, developed for us in connection with the System, including: (i) your initial System-associated email address; (ii) certain website maintenance; (iii) the required POS software and certain related services provided by our Current Billing/POS Provider; and (iv) possibly additional software that we are or may designate for use in connection with the operation of your Franchised Business (collectively, the "Required Software"). We may modify our Technology Fee – the amount and/or the technology services or Required Software access we determine to provide as part of said fee – upon at least 60 days' prior written notice via the Manuals or otherwise i |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to use specific POS software. This requirement is tied to the Technology Fee, which is currently 2% of the Gross Revenue generated by the Franchised Business over the preceding reporting period.
The Technology Fee covers various technology-related services and products that Fitstop associates with its system. These include an initial System-associated email address, certain website maintenance, the required POS software provided by Fitstop's Current Billing/POS Provider, and possibly additional software that Fitstop designates for use in the operation of the Franchised Business, which are collectively referred to as the "Required Software".
Fitstop retains the right to modify the Technology Fee, including the amount and the technology services or Required Software access provided, with at least 60 days' prior written notice via the Manuals or other written communication. This means a Fitstop franchisee must budget for this ongoing technology expense and be prepared to adapt to changes in the required software and associated costs as directed by Fitstop.