For Fitstop franchisees, what must they ensure regarding payments to approved suppliers and other vendors?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Fee, Local Marketing Requirement and/or other marketing/advertising and/or promotional expenditures, to the extent such amounts are payable to us and/or any of our Approved Suppliers.
- 13.8 Other Amounts Payable to Third-Party Approved Supplier(s) and/or Otherwise in Connection with the Franchised Business. You must ensure that timely payment is made with respect to all amounts due and owing to: (i) any designated or other Approved Supplier for Required Items (products or services) that we designate in our Manuals or otherwise in writing, including our then-current Approved Supplier for merchant processing services, consistent with the applicable Approved Supplier's invoicing, terms and conditions; and (ii) any other third-party landlord, supplier, provider or other vendor that has been used or engaged by you in connection with the establishment and/or ongoing operation of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must ensure timely payments to approved suppliers and other vendors. Specifically, franchisees must make timely payments for all amounts due to any designated or approved supplier for required items, including the approved supplier for merchant processing services. These payments must align with the supplier's invoicing terms and conditions.
This requirement extends to any third-party landlord, supplier, provider, or other vendor engaged by the franchisee in connection with establishing or operating the Fitstop franchise. This encompasses a broad range of potential expenses, highlighting the importance of managing vendor relationships and adhering to payment schedules.
Furthermore, if the franchisee is required to license and use any required software not covered by the Technology Fee, they must pay the approved supplier directly for licensing and other associated fees as required by the provider. This underscores the franchisee's responsibility to handle payments for essential operational software separately and promptly. Failing to adhere to these payment obligations could lead to disruptions in supply, services, or software access, negatively impacting the Fitstop franchise's operations.