What is a Fitstop franchisee's 'Designated EFT Account' used for?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
such services, like other Approved Suppliers, will be identified in writing by us via the Manuals or otherwise.
- 13.1.2 EFT Program Participation; Designated EFT Account. Regardless of your obligations under Section 13.1.1, you must at all times participate in our automatic debit/credit transfer program as specified by us in our Manuals or otherwise in writing (the "EFT Program") for the payment of any amounts due to us pursuant to this Agreement. You shall execute and deliver to us such documents and instruments as may be necessary to establish and maintain said automatic debit/credit transfer program, including all information and/or materials (i.e., voided check) necessary for us to identify and enroll your account in the EFT Program (your "Designated EFT Account").
- 13.2 Definition of "Gross Revenue". For the purposes of this Agreement, the term "Gross Revenue" shall mean the total amount of consideration, whether cash, credit, or payment in kind, received by you for all goods sold and services (including all membership fees and other revenue generated from the sale of Approved Services and Approved Products), including barter (exchange of tuition for services or products), and excluding refunds, uncollectible debts, taxes collected and paid to a tax authority, and tuition credits for staff children.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee's Designated EFT Account is used for automatic debit/credit transfers to pay amounts due to Fitstop.
Specifically, Fitstop franchisees must participate in an automatic debit/credit transfer program (EFT Program) for the payment of any amounts due to Fitstop under the Franchise Agreement. To facilitate this, franchisees must provide the necessary documentation and information, such as a voided check, to enroll their account (the Designated EFT Account) in the EFT Program.
In addition to royalty fees, the Designated EFT Account is used to cover Training Fees, Transfer Fees, Renewal Fees, Local Marketing Requirement expenditures, and other marketing/advertising and/or promotional expenditures payable to Fitstop or its approved suppliers. This ensures that Fitstop can collect fees and that franchisees meet their financial obligations for various aspects of the franchise operation.