factual

When are Fitstop franchisees paid for sales made through the online ordering system?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 13.9 Related Acknowledgements. The parties acknowledge and agree that (i) all payments made by members in respect of Approved Products and/or Approved Services which you provide to members from your Franchise must be processed through our online ordering system via our website or our application; (ii) we may, in our reasonable discretion, allocate discounted or free memberships to members who work at our headquarters, other team members, corporate partners, athletes and ambassadors and sponsors of our brand; (iii) there is no exclusivity of members and members may openly choose to deal with any franchisee, regardless of the member's location; (iv) subject to the below, all payments received by us from members who pay for Approved Products and/or services which you provide from your Franchise through our online ordering system via our website or the application are accepted by us for and on your behalf unless advised otherwise by us in writing at any time during the Term; and (v) all amounts from the sale of the Approved Products and/or services which you provide from your Franchise that we receive from members through our online ordering system via our website or the application are set up to be paid by a third party vendor to you on the third calendar day of each month less:

  • 13.9.1 any merchant fees that we incur upon receipt of the payments referred to within this clause;

  • 13.9.2 any merchant fees that we incur when transferring such payments to you; and

  • 13.9.3 any amount payable by you to us under this Agreement.

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

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, payments for approved products and services sold through Fitstop's online ordering system are processed through Fitstop's website or application. These payments are accepted by Fitstop on behalf of the franchisee, unless Fitstop advises otherwise in writing.

Fitstop uses a third-party vendor to pay the franchisee for these online sales. The payments are scheduled to be made on the third calendar day of each month. However, certain deductions are made before the franchisee receives the payment.

The amounts paid to the Fitstop franchisee are subject to deductions for merchant fees incurred by Fitstop upon receiving the payments, merchant fees incurred when transferring the payments to the franchisee, and any other amounts payable by the franchisee to Fitstop under the Franchise Agreement.

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.